Wonga's co-founder is to leave the payday lender months after it comes under the auspices of the City regulator

The co-founder of Wonga, the payday lender, is to step down as its chairman just months after handing over the reins as its chief executive. Sky News has learnt that Errol Damelin is expected to leave Wonga later this year, although he could be persuaded to remain as a non-executive director pending the outcome of discussions with board colleagues. Egon Zehnder International, the executive search firm, has been handed the task of identifying the new chairman, sources said on Saturday. News of Mr Damelin’s departure comes just days before responsibility for regulating short-term lenders such as Wonga passes from the Office of Fair Trading to the Financial Conduct Authority (FCA). The co-founder’s exit will be a significant moment in Wonga’s history as it battles to persuade a hostile group of stakeholders that its business model is justified. Mr Damelin, who orchestrated Wonga’s sponsorships of Newcastle United and Blackpool, owns shares that would be worth hundreds of millions of pounds in the event of a sale or flotation of the company......Read more here