FCA-Authorised Electronic Money Institution Viola Money Enters Administration

The UK Financial Conduct Authority (FCA) recently announced that Viola Money (Europe) Limited, an electronic money institution authorised by the FCA under the Electronic Money Regulations 2011 (EMRs), has entered into the special administration process.

The special administration order was made by the court under the Payment and Electronic Money Institution Insolvency Regulations 2021 and Edward George Boyle and James Robert Bennett of Interpath Advisory have been appointed as joint special administrators.

The application for the special administration was made by the FCA and follows requirements imposed on Viola on 14 December 2021, which required it to cease all regulated electronic money and payment services.

"These requirements were imposed because we identified a number of serious concerns around the way that Viola operated its business and prevented the firm from dealing on behalf of its clients,"the authority stated.

Viola's special administrators are responsible for managing claims against the firm and distributing funds back to customers where possible. The special administrators are required to provide a report to creditors within 8 weeks of their appointment which will include details of their proposals and how customers should make a claim.

Last week, the FCA has imposed a £40,806,700 fine on BlueCrest Capital Management (UK) LLP (BCMUK)​, and ordered the company to pay redress to clients who have suffered loss as a result of its failings.