As a P2P lending platform that is authorised and regulated by the Financial Conduct Authority, Sourced Capital is required to have a ‘wind-down plan’ in place that would set out what would happen if we decided to exit this market or if an unexpected event meant we were unable to operate our platform.

Our wind-down plan is designed to enable us to cease our regulated activities and achieve cancellation of our regulatory permissions in an orderly manner. We have policies in place that would cover both scenarios of either a company-managed wind-down scenario or a wind-down triggered by events beyond our control.

Our wind-down plan is reviewed and approved by our board on an annual basis and remains as a living document.

In the event of a planned Wind Down

Our wind-down plan allows us to identify that we have adequate resources (both financial and non-financial) in place to wind down the services in an orderly manner, especially under potentially challenging circumstance.

We consider that we are best placed to manage the wind-down of the services in the best interests of lenders and therefore we will continuously monitor available management information to ensure we monitor for any potential triggers of a wind-down scenario.

In the event of a unplanned Wind Down

Lenders would still continue to receive repayments on loans originated with Sourced Capital, because all loan contracts are between borrowers and lenders and would still remain valid.

We have appointed a standby servicing company, Limited, to manage and administer the loan book should this situation arise. The standby servicer can also perform ISA manager activities and would continue to administer loan holdings held in a Sourced Capital ISA. All lender funds are held in a separate client money bank account and don’t form part of Sourced Capital’s assets.

Lenders would be unable to add new funds and no new loans would be issued by Sourced Capital.

In the event of a wind-down, borrowers would continue to make their repayments as they would have outside of the wind down activities. Failure to do so could lead to recovery action.