Amigo enters Asset Voluntary Requirement with regulator
The City regulator has told Amigo’s new board it cannot transfer any assets outside of the group without its permission.
Amigo (AMGO) has entered an Asset Voluntary Requirement (AVR) with the Financial Conduct Authority (FCA) which means the lender will need its approval to transfer assets outside of the group.
It also means it needs the regulator’s approval to pay bonus payments to company executives and dividends to shareholders.
The subprime lender provides loans to those who struggle to obtain credit from mainstream lenders and is currently being investigated by the FCA over how it assesses the creditworthiness of its customers.
“The Asset VReq does not impact the day to day running of Amigo or its ability to continue to pay down debt”, the lender said in a statement today.
“Amigo has adequate liquidity to continue to fund operations and support its customers. The Board continues to be focused on addressing Amigo’s legacy issues, restoring confidence in its corporate governance and building a sustainable business for the long term.”
Amigo has been in a public battle with its founder James Benamor and its new chief executive Glen Crawford last month pulled out of the role he took on in July.
In August the subprime lender narrowly saw off a second bid by Benamor to reclaim control of the firm, as shareholders rejected his attempt to return and oust most of the management team.
He has blamed Amigo’s management team for mishandling complaints and failing to stand up to the regulators.
It followed an earlier unsuccessful attempt in June but suggested he would not mount any further campaigns for the time being.