Context
The FCA has announced that Kanda Products & Services, an authorised credit broker, has gone into liquidation. The firm operated a network of around 700 Introducer Appointed Representatives, mainly tradespeople who introduced customers to Kanda to finance home improvements and other goods and services.
In February 2026 Kanda had agreed to a voluntary requirement with the FCA which sought to address weaknesses in its systems and controls by not appointing any new Appointed Representatives without the FCA’s written consent. On 6 May 2026 the firm appointed FRP Advisory Trading as Liquidators of Kanda.
Key points to note and next actions
Firms with Introducer Appointed Representatives must ensure they maintain adequate oversight of their activities. IAR’s are restricted to introducing customers to the Principal firm, and distributing the Principal’s approved marketing materials. If they undertake any other activity, there is a risk that the IAR may be performing regulated activity, which can lead to customer harm.
Kanda, as the Principal did not have sufficient systems and controls to demonstrate this, and had a significant number of IAR’s. Whilst Kanda is still authorised by the FCA, and is subject to the FCA’s rules, its move to liquidation is a reminder of the need to maintain adequate oversight over its activities including those of all its IAR’s.