FCA-Authorised Payments Institution Xpress Enters Special Administration

The UK Financial Conduct Authority (FCA) announced that on 11 February 2022, a special administration order was made by the Court in relation to Xpress Money Services Limited (Xpress) under the Payment and Electronic Money Institution Insolvency Regulations 2021.

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The Payment and Electronic Money Institution Insolvency Regulations 2021 introduced a new special administration regime for payment and e-money institutions. A special administration is similar to an ordinary administration however, to the special administrators have an additional objective of returning customer funds as soon as reasonably practicable.

David Hudson and Philip Reynolds of FRP Advisory have been appointed as joint special administrators. Special administration is intended to facilitate the return of customer funds as soon as possible.

Xpress is an authorised payments institution, authorised by the FCA under the Payments Services Regulations 2017. The application for the special administration was made by the FCA in response to a winding-up petition brought against the firm, to help ensure better outcomes for affected customers.        

"Xpress's joint special administrators are responsible for managing claims against the firm and returning funds to customers where possible. Customers should receive more information from them, including details on how to make a claim, within 8 weeks of appointment,"FCA stressed.