Important piece of news today regarding P2P lending provider TrustBuddy. The company was notified by the Danish Financial Supervisory Authority, “Finanstilsynet” on 23 June this year that the company was considered in breach of the Danish Act on Financial Business by raising loans from Danish TrustBuddies. The company was simultaneously disapproved for its larger credit facilitator license in Sweden.
Since than, TrustBuddy has made several alterations, and as a result of the on-going positive dialogue with the Danish FSA, TrustBuddy is maintaining its Danish presence. Should the on-going discussions end up in a negative position, TrustBuddy has several alternative solutions for continued operations in Denmark, but will still strive to become compliant with the current and forthcoming legal environment in Denmark for its existing operations – as well as all its other markets.
The unclear legal situation has been a drag on TrustBuddy’s share price over the last months. Operationally, the company is enjoying strong growth, as reported in yesterday’s Q2 2014 results.
A solution to the legal issues will certainly be a major trigger for the TBDY share. Today’s announcement is a step into that direction, we believe.