An alternative investment manager has gone into voluntary liquidation.
The Financial Conduct Authority has confirmed Prosper has applied to cancel its authorisation.
The firm was an alternative investment fund manager and arranged deals in investments.
It was also responsible for the activities of its appointed representative, Crowd2Let Capital Limited.
The FCA said: “The Financial Ombudsman Service upheld complaints about property investments made through Crowd2Let, which was an appointed representative of Prosper.
“Having considered the financial position and received professional insolvency advice, Prosper stopped trading. Its designated members took steps to place Prosper into creditors’ voluntary liquidation.”
The FCA said it is liaising with the joint liquidators but does not regulate the insolvency process.
The Financial Services Compensation Scheme is now open to claims for Prosper about the activities of its appointed representative, Crowd2Let.
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The scheme is currently investigating Prosper to decide whether claims qualify for compensation.
Those who want to make a complaint about Prosper should contact joint liquidators Begbies Traynor by emailing prospercapital@btguk.com.
The FCA warned people to “proceed with caution” if approached by a claims management company and said for most clients there is no benefit to involving a third party.
It also said customers should remain alert to the possibility of fraud and to contact joint liquidators if they get an unexpected phone call from someone claiming to be from Prosper or BTG Begbies Traynor.
tara.o’connor@ft.com
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