UK's FCA opens enforcement investigation into collapsed lender MFS
→Legal teams at creditor banks must comply with court asset-freeze orders
Change
UK's Financial Conduct Authority (FCA) has opened a formal enforcement investigation into Market Financial Solutions (MFS) after the company collapsed amid an alleged £1.3bn mortgage fraud and following a worldwide asset-freezing order on founder Paresh Raja.
Why it matters
Court filings allege that security over some properties was granted to two or more lenders (double pledging) and that some loans may be unsecured. Major banks and private‑credit funds are named among the creditors with claims tied to those alleged arrangements.
Implications
- — Legal teams at creditor banks and private‑credit funds must immediately comply with London and Dubai court orders barring Paresh Raja from dissipating assets — non‑compliance risks contempt proceedings and enforcement penalties.
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Source
View on The Guardian