Administrators have been brought in to a Midlands-registered business offering electronic payment services following the intervention of the Financial Conduct Authority.
James Bennett and Ed Boyle from Interpath Advisory have been appointed joint special administrators to Viola Money (Europe) Limited, which is registered in Barlborough, between Worksop and Chesterfield, in north Derbyshire.
The business is described as an “electronic money institution” focused on digital payments, offering e-wallet accounts, prepaid cards and money transfers to individuals.
Interpath said the FCA took action because it had a number of “serious concerns about Viola’s operations”.
The administrators said their job will be to try and return any money owed to customers, who will need to make a formal claim.
Its online Q&A page said customers affected had either Viola Business or Viola Black e‐money accounts.
It told affected customers: “In the short term, it means that you will not be able to transfer or otherwise use your funds held with the company – they are effectively frozen.
“The JSAs recognise that this is a very difficult position for customers to be put in. One of the JSAs’ key objectives is to resolve this position as quickly as possible.
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“In the longer term a plan will be developed to return the safeguarded funds either to customers directly or to another provider.
“The JSAs will correspond with all known customers in the coming days.”
It also said: “It is not possible to be certain at present how much and when safeguarded funds will be returned.
“It is dependent on, amongst other things, the extent of any shortfall in safeguarded funds identified and the quantum of costs and professional fees associated with distributing the safeguarded funds back to customers.“
In a statement Interpath Advisory said: “On 21 December 2021, a special administration order was made by the court in relation to Viola under the Payment and Electronic Money Institution Insolvency Regulations 2021.
“The application to the court for the special administration was made by the FCA and follows requirements imposed on Viola by the FCA on 14 December 2021, which required it to cease all regulated electronic money and payment services and not to deal with any of its client funds.
“This is the first special administration order made under these regulations.
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“The special administration process includes provisions to facilitate the return of customer monies by the administrators.
“The joint special administrators will carry out an assessment of all the customer funds held by the firm to confirm the current position.”
James Bennett, managing director at Interpath Advisory and joint special administrator, said: “Our immediate priority is to gather in the assets of the company, and those it safeguarded on behalf of its customers.
“We will also seek to reconcile the accounts of the company before distributing the safeguarded funds as quickly as possible.”
Customers have been advised to visit the dedicated website at http://vmoney.ia-insolv.com where they will find more information about the special administration, including answers to a number of frequently asked questions.
Customers can also contact a helpline on 0203 989 2733.
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