FCA investigates collapsed lender MFS amid £1.3bn mortgage scandal

Move follows the granting of a worldwide asset freezing order on company’s founder, Paresh Raja

• What is the £1.3bn MFS mortgage scandal and what is private credit?

The UK’s financial regulator has launched an investigation into Market Financial Solutions (MFS), the mortgage lender that collapsed last month amid allegations of fraud.

The move follows the granting of a £1.3bn worldwide asset-freezing order on MFS founder Paresh Raja on Wednesday, as creditors successfully gained court orders in London and Dubai barring the tycoon from dissipating assets.