This comes a month after the lender entered administration, citing banking issues.
It was later revealed that a number of Market Financial Solutions’ funders, including Barclays, blocked the lender’s transactions before it went into administration after identifying irregularities.
The lender is registered as an Annex 1 business with the FCA, meaning it is not authorised or subject to wider regulation. It is solely registered and supervised for its compliance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
The lender described the restrictions on its banking access as a “procedural matter” and said the administration was to protect its staff, creditors and investors.
This week, Paresh Raja, the CEO and founder, had a worldwide banking order imposed on him by the lender’s administrators, preventing him from spending more than £5,000 per week without consent.
Conversations you need to have with landlords before the Renters’ Rights Act
Sponsored by BM Solutions
The FCA’s investigation will determine if there has been any serious misconduct and whether action needs to be taken.
