Swedish P2P lender TrustBuddy this morning announced the purchase of a United Kingdom based financial services company with interim permission under the new regulation by the FCA.
The acquisition was finalized last week. The purchase only includes the company itself and no current business, and thus the capital amount for the company is kept below £100,000.
TrustBuddy will hire key staff in the coming months in order to enable a market entry by year-end (including both short and long term P2P lending). UK is Europe’s most important P2P market as it has developed a unique P2P legislation that TrustBuddy supports. TrustBuddy expects the UK to become the group’s largest market by mid-year 2015.
According to TrustBuddy, the UK is a perfectly suitable market for TrustBuddy’s progression as it has a good legal system including a brand new P2P regulation, great credit check opportunities, well established and educated P2P-market, huge lending capital potential and the recently added opportunity for private P2P-based pension investments to be under the ISA structure.
Sebastian Hagman, CIO of TrustBuddy, has been based in London since September 2013. “A UK market entry has been a focus for TrustBuddy as it is the most established P2P market in Europe and the new P2P regulation is a great step forward for the whole P2P industry. We hope that many other European countries will follow UK’s path and create their own P2P regulations. The opportunities TrustBuddy have in the UK for both short and long term lending are substantial.”
The TrustBuddy share has been beaten down in recent week by various speculations of private investors regarding the license in Sweden. The company, however, seems to follow a clear strategy and management seems to believe strongly in the strategy, judging by the recent large insider purchases.