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Story: FCA-Regulated Credit Broker Kanda Collapses After Voluntary Restrictions Fail to Save Firm

By Jean-Luc Maracon

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Regulatory Pressure Built for Months. The February 16 agreement with the FCA wasn't just a slap on the wrist.

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Echoes of Wonga and Other Collapses. Wonga went down in 2018. That payday lender collapsed under regulatory pressure and compensation…

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What Happens to Consumers and Competitors. People who were in the middle of getting financing through Kanda's network are probably confused…

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What to watch. 1. How many other FCA voluntary requirements convert from "fix-it" tool to liquidation precursor…

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Kanda Products and Services Ltd went into liquidation on May 6, 2026. The FCA-authorized credit broker had built a sizable network of tradespeople who helped consumers finance…

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Philip Harris and Neville Side from FRP Advisory Trading Limited are now handling the liquidation.

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The February 16 agreement with the FCA wasn't just a slap on the wrist. Kanda had to stop bringing on new introducers, basically freezing its ability to grow or even maintain its…

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Credit brokers live and die by their networks. Cut off that growth, and the business model starts to crumble pretty fast.

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The FCA's been tightening the screws across the consumer credit sector for years now. Firms that can't keep up with compliance demands find themselves in trouble.

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Wonga went down in 2018. That payday lender collapsed under regulatory pressure and compensation claims after the FCA cracked down on irresponsible lending practices.

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Financial services firms used to have more room to maneuver. Not anymore. The FCA's gotten more aggressive about intervening early when it spots problems.

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People who were in the middle of getting financing through Kanda's network are probably confused right now. Some deals might fall through.

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Longer term, this kind of collapse reduces consumer choice. Fewer credit brokers means fewer financing options for home improvements.

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Competitors who've been playing by the rules stand to benefit. They'll likely pick up some of Kanda's former introducers and customers.

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See also: FCA Targets Claims Firms as Consumers Face Misleading Ads and Unfair Fees

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