In an update to investors, the administrators warned that deficiencies in anti-money laundering (AML) and client take-on procedures needed to be thoroughly investigated before funds could be released, in an update to investors.
It added that restrictions from the Financial Conduct Authority (FCA) required a full reconciliation to be completed.
However, the administrators noted that if any investors were facing financial hardship as a result of the process, they should contact them, because they “may be able to take steps to accelerate this process in individual circumstances”.
In the latest update, the administrators said: “As previously noted in our correspondence with investors, Lendy was made subject to an asset restriction by the FCA, which has meant that payments from Lendy’s bank account have been restricted and no payments will be released until a full reconciliation has been completed.
“Before we, as the joint administrators, release any funds to investors (which includes outstanding withdrawal of available balances, funds from the sale of security properties and the recoveries process), we are required to ensure compliance with appropriate AML legislation.
“An initial review of the company’s existing AML and client take-on procedures has noted deficiencies that have required to be addressed. This is ongoing, with legal advice being obtained from Fieldfisher.
“Until this process is completed, the withdrawal facility will continue to be temporarily suspended on the Lendy platform.”
It added: “We are currently working with a number of third party providers and at this stage we cannot confirm when the matter will be concluded, however based on indicative timetables we anticipate this process will be completed by 1 October 2019.”