RSM administrators to failed peer-to-peer lender
RSM Restructuring Advisory has been appointed joint administrators at three companies within the Lendy Group, marking one of the biggest collapses in the peer-to-peer lending market to date
3 Jun 2019
Around 22,000 investors are believed to have placed some £165m with the platform.
Partners Damian Webb, Phillip Sykes and Mark Wilson, will handle the administration of Lendy Ltd, Saving Stream Security Holdings Ltd and Lendy Provision Reserve Ltd, all of which are subsidiaries of Lendy Group Ltd, operators of a peer-to-peer secured property lending platform.
The move follows action by the Financial Conduct Authority (FCA) in relation to Lendy Ltd, which is a regulated peer-to-peer firm.
The administrators, who have been appointed by an order of the court, are working closely with the FCA who have consented to their appointment over the companies.
The administrators will take control of the companies' operations and will formulate their proposals for achieving the purposes of the administrations for circulation to investors and creditors in due course.
The FCA estimates that 275,000 people have cash in peer-to-peer lending platforms, investing more than £5bn across 68 providers. It is set to introduce new guidelines for the industry later this month.