Regulator issues warning on fintech Lanistar for unauthorised services
Update: 9:07pm Friday 20/11: The FCA have withdrawn their warning after changes by Lanistar.
The Financial Conduct Authority has accused the much-hyped fintech Lanistar of offering unauthorised financial services.
Founded by Gurhan Kiziloz, Lanistar this week launched an influencer campaign claiming to be the “world’s most secure card”.
But the regulator today has warned that some companies which operate without the right authorisation are scams.
“We believe this firm has been providing financial services or products in the UK without our authorisation,” the FCA said in a statement today. “This firm is not authorised by us and is targeting people in the UK. Based upon information we hold, we believe it is carrying on regulated activities which require authorisation.”
Over the summer Lanistar announced it had been approved by Mastercard’s payment rails and had raised £15m from Kiziloz’s family members. Milaya Capital who had been announced as an investor in July later pulled out.
“Lanistar is not only planning to stand out, but step over all the other start-ups in the fintech industry,” Kiziloz told Forbes in May.
Targeting Generation Z and millennials, the company claims it is “revolutionising how people use money” by using “polymorphic technology”. Lanistar is aiming to rack up 1bn social media impressions by coordinating a 3000-strong influencer campaign.
Influencers involved include Love Island stars and footballers Karim Benzema and Luis Suarez.
Its Volt card, which is due to launch in January, allows users to add up to eight bank cards onto the app. It will need to seek authorisation from the FCA to operate lawfully.
A spokesperson for Lanistar said: “Legal and regulatory compliance are central to Lanistar’s business and we confirm that we are not providing financial services or products without the FCA’s authorisation.”
“We have announced our intended future services and we will be partnering with firms that are authorised by the FCA to provide financial services or products. We are in the process of the contacting the FCA to clarify the position and will be requesting that the Notice is removed.”