The Financial Conduct Authority (FCA) has opened an enforcement investigation into Market Financial Solutions.

The mortgage and buy-to-let lender entered administration on 25 February after citing an “unexpected banking-related issue”.

When Market Financial Solutions made an application to enter administration, the company’s owner, Paresh Raja, said the situation did not reflect a “failure of the underlying business”, but a “technical and procedural impasse”.

It has since emerged that Market Financial Solutions and Raja had links to a former Bangladeshi Government minister subject to international money laundering investigations, as reported by the Financial Times.

Earlier this week, the administrators of Market Financial Solutions secured a worldwide freezing order against Raja, who is now barred from dissipating assets worth up to the suspected value of funds allegedly missing from the property finance lending firm.

Under FCA terms, Market Financial Solutions is an “Annex 1” business, which is solely registered with and supervised by the FCA for its compliance with money laundering, terrorist financing and transfer of funds regulation. Annex 1 registered firms are not authorised or subject to wider FCA regulation.

Market Financial Solutions was founded in 2006 and over its lifetime has managed more than £1.2bn in cumulative lending. At its peak, the lender’s loan book reached approximately £2.4bn.

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