The property-backed P2P lender has become the latest platform to be authorised by the UK regulator.
P2P property platform Lendy has received full authorisation from the UK financial regulator the Financial Conduct Authority (FCA), according a statement by the firm.
Hailing a new strategic phase for the business, it says its lending model was authorised by the FCA following “a detailed end to end assessment of its business and operating model”.
Just twelve months ago, while the FCA had tentatively begun to speed up authorisations for lending platforms, the Big Three platforms - Funding Circle, Zopa and Ratesetter - were not all authorised - meaning they could not launch their own Innovative Finance ISAs, a huge potential channel for new funding. It seems likely that Lendy will soon follow suit.
Now, all three have passed the hurdle and launched their IFISAs, seeing tens of millions of pounds move into the tax-wrapper.
Launched back in 2012, Lendy, has facilitated over £400m in lending and now has 21,500 registered investors. It is aiming - following passing the regulatory hurdle - to innovate with new products and services in line with its full FCA permission.
Liam Brooke, CEO of Lendy, said: “We’re very pleased to have been given full authorisation by the FCA. It has been a long and sometimes challenging journey, which has involved a detailed review of our processes and policies and has helped us mature into a stronger and more robust business.”
“This is a validation of our efforts to move from a young start-up to an established mainstream lender, with the ability to disrupt the banking model for the benefit of clients, and design new investment products and services,” he said.
“P2P, he adds, has grown in popularity over recent years with Lendy’s own bridging and development loans having helped to fund hundreds of property developments.
This includes major residential conversions, and commercial and industrial property.
“This kind of finance is critical to tackling the UK’s housing shortfall, with house building now at its lowest rate since the second world war,” he said.
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