The Lemon Fool

People who invested in businesses via a failed peer-to-peer platform have discovered their money was not ring-fenced as promised, raising new questions for the City regulator. Lendy investors, who are owed more than £150 million, expressed shock and anger after administrators told them to brace for a much bigger hit than expected because a significant proportion of money they believe they are owed has been earmarked to pay off insolvency practitioners and creditors. – The Times

1. ring fenced no longer means ring fenced (e.g in the case of broker nominees)
2. in case of insolvency, you may loose some of your money to liquidators fees

yorkshirelad1 wrote:

People who invested in businesses via a failed peer-to-peer platform have discovered their money was not ring-fenced as promised, raising new questions for the City regulator. Lendy investors, who are owed more than £150 million, expressed shock and anger after administrators told them to brace for a much bigger hit than expected because a significant proportion of money they believe they are owed has been earmarked to pay off insolvency practitioners and creditors. – The Times

https://www.sharecast.com/news/press-round-up-short-premium/tuesday-newspaper-round-up-tsb-trump-virgin-atlantic-lendy--7144112.html

Wonder if the FSCS will step in and pay the insolvency fees (as in the case of e.g. Beaufort)

Lessons to be learnt (at the risk of stating the obvious)

1. ring fenced no longer means ring fenced (e.g in the case of broker nominees)
2. in case of insolvency, you may loose some of your money to liquidators fees

have discovered their money was not ring-fenced as promised, raising new questions for the City regulator.