LandlordInvest closes to new business amid FCA probe
UK peer-to-peer lending platform LandlordInvest has been told by the regulator to cease onboarding of new business and to instate an interim chief executive.
In an email to LandlordInvest employees on 30 October, seen by Alternative Credit Investor, the Financial Conduct Authority (FCA) also had several queries relating to co-founder and chief executive Filip Karadaghi.
The City watchdog asked for confirmation that Karadaghi no longer has access to the firm and client money bank accounts.
It also asked how LandlordInvest plans to recover a £17,000 director’s loan used for investments in Karadaghi’s name, and for copies of four RBS bank account statements to date, showing the last week of transactions.
Read more: LandlordInvest moots wind-down
The FCA also asked the LandlordInvest employees whether Karadaghi has transferred any money since its team met with the firm on 22 October.
Additionally, it asked LandlordInvest to confirm when Joe Vallender, co-founder and chief technology officer, will become interim chief executive.
It has asked for this information by 11am on 31 October 2024.
Read more: LandlordInvest reveals more than 50pc of B and C rated loans have been paid on time
“I’ve now had official confirmation that the FCA is forcing us to wind-down LandlordInvest; they sent an email, asking us not to accept any further business,” Karadaghi said in a post on LinkedIn today.
“They did not send the email to me directly, but to my coworkers only, despite that I hold various regulatory roles and am the chief executive.
“I will digest these latest developments and provide further update(s) as appropriate.”
In emailed responses to Alternative Credit Investor, Karadaghi said that he has not heard anything from the FCA in relation to the director’s loan or the call for a management change.
He said he will “continue sharing as this progresses as we have nothing to hide.”
The FCA said it is unable to comment on individual cases, beyond what is on its Financial Services Register.
Read more: Over half of LandlordInvest loans funded in under five minutes
