UK peer-to-peer lending platform FundingSecure has been placed into administration, according to the Financial Conduct Authority.
FundingSecure facilitated crowdfunded loans used to fund the purchase and development of property, as well as pawn-broking style loans secured on items of value.
CG Recovery was appointed as administrator on Wednesday and has been tasked with contacting investors. On its website, FundingSecure says it has more than 5000 investors.
In a statement on its website, FundingSecure says: "As a result of the administration no legal proceedings may be commenced or continued with against the Company without the consent of the Administrators or leave of the Court. The Company is now protected from any third party actions by virtue of a statutory moratorium."
Sturat Law, CEO at P2P platform Assetz Capital, says that smaller players are likely to continue to struggle but adds: “This should not be viewed as a reflection of peer-to-peer as a whole, as it is a really important part of the alternative finance industry supporting the country’s need for finance."