Prosper Capital liquidates after Crowd2Let complaints

Prosper Capital LLP has entered creditors’ voluntary liquidation after Financial Ombudsman Service decisions upheld customer complaints concerning property investments promoted through appointed representative Crowd2Let Capital Limited.

Jeremy Karr and Simon Killick of BTG Begbies Traynor were appointed joint liquidators on 1 June 2026. Prosper stopped trading after reviewing its financial position and obtaining professional insolvency advice, according to the Financial Conduct Authority.

The Guildford-based firm was authorised by the FCA as an alternative investment fund manager and to arrange deals in investments. It also acted as principal to Crowd2Let, meaning it carried regulatory responsibility for activities undertaken by the crowdfunding platform within the scope of that appointment.

Crowd2Let enabled investors to acquire shares in special-purpose companies established to purchase residential properties, with returns intended to come from rental income and the eventual sale of the assets.

The Financial Ombudsman upheld complaints alleging that customers had been misled about Crowd2Let investments and that Prosper failed to meet its regulatory obligations in overseeing its appointed representative. In one February 2026 decision, the ombudsman upheld a complaint from an investor who said he had been misled when making a property investment through the platform. Further decisions in March concerned allegations that investor funds were used improperly, causing financial losses.

The decisions required Prosper to compensate the affected investors. The resulting liabilities, together with the firm’s wider financial position, prompted its designated members to commence the voluntary liquidation.

The Financial Services Compensation Scheme has opened its claims portal for customers seeking compensation from Prosper in connection with Crowd2Let. The FSCS is still investigating whether the claims satisfy its eligibility requirements, and submitted cases will not immediately proceed to substantive assessment.

Prosper, which had been FCA-authorised since 2006, has applied to cancel its permissions. That application remains subject to regulatory review, and the FCA said it will continue to work with the liquidators while exercising its statutory functions.