LandlordInvest moots wind-down
UK peer-to-peer lending platform LandlordInvest is facing a potential wind-down amid investigations by the Financial Conduct Authority (FCA).
In a post on LinkedIn at the weekend, LandlordInvest managing partner Filip Karadaghi said the regulator was “pushing us to wind down, for reason(s) unknown to us.”
He added that the firm would “do as much as possible to wind down ourselves as it will be much more beneficial than the regulator appointing administrators.”
Karadaghi said he could only speculate on the reasons for the ongoing regulatory intervention, saying the firm had been a “shining light in the UK’s P2P industry for many years.”
Read more: Over half of LandlordInvest loans funded in under five minutes
However, speaking to Alternative Credit Investor today, he said the FCA had told the firm it “wish[ed] to understand [its] business model.”
Karadaghi confirmed that the firm had not yet decided to wind down but that the firm’s “perception is that the regulator wishes for us to do so due to their overly aggressive approach last couple weeks.”
He said the FCA was “dedicating significant resources” to its investigation of the P2P lender, and wanted to send in a team of investigators that would outnumber LandlordInvest’s entire workforce.
Karadaghi added: “[It] makes little sense given the size of the firm and otherwise spotless compliance track record over nearly eight years.”
Read more: LandlordInvest reveals more than 50pc of B and C rated loans have been paid on time
He ended his LinkedIn post on the weekend with a comment on trading conditions in the UK, saying: “I hope that our example serves as a warning for any EU citizens looking to set up a business in the UK.”
Industry participants commenting on Karadaghi’s LinkedIn post expressed disappointment at the news. Among them, Breeze Capital’s Mark Harrison said: “I’ve always felt that your proposition was strong and transparent.”
Property finance broker Phil Mabb said: “Top operator and one of the honourable firms in the sector. [Sad] news indeed.”
Yesterday Karadaghi published another post on LinkedIn asking that people interested in acquiring either the whole or part of the firm contact him directly.
The FCA declined to comment.
Read more: P2P lenders dismiss default concerns
