FCA publishes statement concerning FundingSecure complaints on FCA oversight failings

Article summary

The Financial Conduct Authority (FCA) has published a statement in response to complaints regarding its handling of FundingSecure Ltd, a regulated peer-to-peer lending firm that entered administration in October 2019. The FCA acknowledged that its assessment of FundingSecure’s application for authorisation could have been more thorough, particularly in recognising changes to the firm's business model—including the addition of offering property development loans—and in ensuring that an approved person was responsible for managing client money at the time of authorisation. It noted that while it sympathises with those who experienced financial losses following the firm’s collapse, these losses were not the result of its actions. The FCA confirmed that affected complainants will receive compensation payments ranging from £50 to £250. It added that it has not upheld complaints relating to its post-authorisation supervision as it found this to be reasonable and proportionate.