Overview
- The Financial Conduct Authority confirmed an enforcement investigation into Market Financial Solutions following its February collapse, with no details yet on scope or timeline.
- Market Financial Solutions operated outside mainstream lending regulation and was only registered with the FCA for anti-money-laundering supervision, underscoring gaps in private credit oversight.
- Creditors allege some properties were used to secure multiple loans, creating a significant shortfall in mortgage collateral that insolvency practitioners say may exceed the initially reported £1.3 billion.
- Founder Paresh Raja is subject to a £1.3 billion worldwide asset freeze and a travel ban in Dubai, and a High Court judge previously found he helped create deceptive documents to justify illegitimate payments.
- More than 200 associated companies are in insolvency, and institutions named in filings and reports include Barclays, Santander, Elliott Management, Wells Fargo, Castlelake, Jefferies and Apollo’s Atlas SP.