We've written to people who complained about the way we authorised and supervised FundingSecure Limited.
We have a great deal of sympathy for those who lost money as a result of the failure of FundingSecure.
FundingSecure Limited was a regulated peer-to-peer lending firm. It went into administration[1] in October 2019.
Complainants have asked us to pay compensation for their financial losses because of the firm's failure. The losses suffered by complainants were caused when FundingSecure Limited went into administration, and not as a result of our actions.
However, we accept that we should have done more during our assessment of the firm's application for authorisation, and we apologise for this. Specifically, we should have done more to understand that FundingSecure Limited's business model had changed and that it had begun to offer property development loans.
We should have also ensured FundingSecure Limited had an approved person responsible for client money at the time it was authorised. However, these failings did not lead to the losses experienced by the complainants.
We've also carefully considered complaints made about our oversight of FundingSecure Limited once it became authorised.
We've not upheld these complaints as we believe our oversight was reasonable and proportionate.
We'll make payments ranging from £50 to £250 to complainants in recognition of how long it took to respond to the complaints.