Monneo Ltd enters special administration

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, the special administrators have an additional objective of returning customer funds as soon as reasonably practicable.

Customers should contact the JSAs if they are concerned, have any questions or for any updates.  

The JSAs will gather as much information as possible from creditors and customers of Monneo about payments made to, or owed by, Monneo.  

Customers of Monneo who believe that they are owed money by the firm should contact the JSAs using the contact details above.  

Customers can also contact our Consumer Helpline for further information. 

No. The FSCS only applies to certain types of activity. This does not include payment services.  

Under the Payment Services Regulations (PSRs), by which regulated payments firms must comply, there are requirements on how customers’ money should be protected, and these requirements are known as ‘safeguarding’. 

When Monneo provided regulated payment services activities it was required to hold money separately for its customers. These safeguarding requirements apply to Monneo, and the firm must comply with them at all times.

Safeguarding is a key consumer protection measure within the PSRs. The purpose of safeguarding is to protect customer funds if a firm fails.

The JSAs will carry out an assessment of all funds held by the firm to establish which are safeguarded for customers and which belong to the firm.

Monneo is not currently providing payment services.

On 6 April 2023, requirements were imposed on Monneo to cease all regulated payment services due to concerns that the firm was not meeting its conditions of authorisation.

Customers cannot take money out of their accounts. The priority for the JSAs is to identify, protect and in due course return funds to customers in accordance with those customers’ interests to the fullest extent possible. 

The JSAs were appointed on 30 May 2023 and are required to provide a report to creditors within 8 weeks of their appointment.

The report will provide details of Monneo’s history, the JSAs’ proposals for conducting the administration and will include details of how customers should make a claim. 

Following the special administration order, the JSAs are responsible for Monneo, but the firm continues to be FCA authorised. The JSAs are officers of the Court and need to comply with all insolvency law. The individuals appointed are authorised to act as licensed insolvency practitioners.

The JSAs have statutory objectives which include engaging with authorities, including the FCA. We will work with the JSAs as appropriate. 

Authorised Payments Institutions (APIs) like Monneo may provide payment services through agents. Monneo’s agent is Izzio Limited.  An agent is any person (this can be an individual or a company) who provides payment services on behalf of an API. Agents are registered by the FCA and published to the FCA’s Register. Where APIs such as Monneo appoint agents, the APIs are responsible for their activities.

Given the restrictions imposed on Monneo, its agents are also restricted from carrying on any regulated activities on its behalf. Accordingly, any customers who have used Monneo via an agent and are unable to access their funds should contact the JSAs if they have any further questions. 

If you are approached by a company offering to help you recover your money, you should proceed with caution. For most of the firm’s clients, there will be no benefit in involving a third party in making a claim. 

If you have any questions about the special administration process, please contact the JSAs using the contact details above.