The U.K. Financial Conduct Authority did not alert investors after it found out that peer-to-peer lender Collateral (UK) Ltd. was falsely appearing as being regulated due to an alteration in the city regulator's public register, The Times reported.
FCA CEO Andrew Bailey reportedly admitted that the platform still drew in £3.8 million of investors' money in the months after the discovery.
Collateral had fallen into administration after it emerged that it had been trading without a license.
The company, which offers pawnbroker-style and property-backed loans, shut down its website after going into administration Feb. 28, 2018, leaving investors unable to view their accounts or access their money.
