LendingCrowd hires compliance head after tough FCA rule changes

The Scottish small business peer-to-peer lender ‘is committed to being a leader in regulation and compliance’.

Image source: Company supplied

LendingCrowd has hired a head risk officer who will be tasked with making sure the platform falls into line with tougher regulator rules imposed on peer-to-peer lenders.

The Edinburgh-based firm has appointed Robbie McKenzie (pictured) to the newly-created post of general counsel and chief risk & compliance officer.

The business said McKenzie, a lawyer who is qualified to practice in both England and Scotland, will have a “particular focus” on making sure it complies with stricter governance and operational rules announced by the Financial Conduct Authority (FCA) earlier this month.

LendingCrowd poached McKenzie from London-based private equity fund manager Pollen Street Capital, where he was chief risk and compliance officer.

He has previously held senior legal and compliance roles at a number of firms including Bank of Scotland and Royal Bank of Scotland.

Peer-to-peer collapse

The platform added that McKenzie is “experienced in providing legal advice and driving regulatory change, having led several businesses through FCA authorisation processes”.

Earlier this month, the financial regulator imposed a 10 per cent limit on the peer-to-peer investments ordinary investors can hold in their portfolio, among a number of rule changes.

These tighter regulations follow the demise of Lendy in May, which collapsed into administration with £160m in outstanding loans and with more than £90m in default.

The FCA’s new rules will come into full effect in December.

LendingCrowd founder and chief executive Stuart Lunn said: “Few organisations of our size employ an in-house general counsel. However, LendingCrowd is committed to being a leader in regulation and compliance, rather than simply meeting our statutory obligations.”

The platform, founded in 2014, employs 40 staff, and has originated over 690 loans to small firms across the UK, totalling more than £60m since its launch.