FundingSecure investors query director involvement in administration

FundingSecure investors query director involvement in administration 1

FUNDINGSECURE investors have expressed concern about the involvement of the collapsed peer-to-peer lender’s directors in the administration.

The P2P pawnbroking platform entered administration last month and administrator CG & Co has revealed early concerns raised by the FundingSecure Action Group.

A regularly updated, frequently asked questions document from CG & Co shows investors have queried why director Raj Kumar, who has also invested in loans, is allowed direct communication with the administrator.

CG & Co denies this is a conflict of interest.

“Directors, and former directors have a statutory obligation to cooperate with the administrators and it is this context that the administrators are engaging with all directors and former directors of the company,” CG & Co said.

“All creditors and investors will be treated fairly and transparently throughout this process and no director or former director, who is also an Investor, will be treated differently.”

The document also appears to confirm legal action is being taken against former FundingSecure founder and director Richard Luxmore.

The administrators were asked about what is happening with the case against Luxmore, with the query stating “I’m presuming that the alleged misappropriation of funds is his reputed 200k company loan to his ex-wife.”

CG & Co said the administrators were dealing with the litigation.

Read more: FundingSecure: Are you a creditor or an investor?

The document also shows the administrator will look to recover loans where only capital has been repaid and is hoping to let investors transfer from their Innovative Finance ISA as soon as possible.

It also leaves an unedited question about the role of the Financial Conduct Authority (FCA).

“If there are breaches in FCA regulations, the FCA should know about it (not that they will do anything), have these matters been reported by the company under their self-reporting requirements,” investors asked in the document.

CG & Co replied that the FCA has been updated on a regular basis.

First seen on P2P Finance News

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