The City watchdog has launched a probe into mortgage lender Market Financial Solutions.
The business collapsed in February, leaving creditors including major banks and private credit funds facing a shortfall of more than £1.3billion.
London-based Market Financial Solutions (MFS), a lender that specialised in complex property-related loans, was placed into administration following allegations of financial irregularities and mismanagement.
Probe: The Financial Conduct Authority said that it had opened an enforcement investigation into MFS
The collapse revived concerns over banks’ and private credit funds’ lending practices as investors grow jittery about risks in wider credit markets. Barclays, Santander, Jefferies, Elliott Management and Apollo-affiliated Atlas SP Partners are among the lenders with exposure to MFS, sources have previously said.
The Financial Conduct Authority said that it had opened an enforcement investigation into MFS, which it oversaw only for anti‑money‑laundering rules and not for wider financial regulation.
AlixPartners, administrators for MFS, said they were aware of the investigation and declined to comment further.
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