Digital payments firm calls in administrators

Viola Money (Europe), the Chesterfield-based electronic money firm which is focused on digital payments and offers e-wallet accounts, prepaid cards and money transfers to individuals, has entered administration.

James Bennett and Ed Boyle from Interpath Advisory have been appointed joint special administrators the firm.

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.

The special administration process includes provisions to facilitate the return of customer monies by the administrators. The joint special administrators say they 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.”