The Bank of London says it is under investigation by UK regulators in a move its auditors warn could cast "significant doubt" over its future.
In accounts that have now finally been filed several months late, the UK clearing bank says it "has been notified by the PRA that it is under investigation in relation to certain historical matters that occurred prior to the change in ownership of the group".
The change of ownership took place last year, when a group now called Fellesskap Group & Holdings took on the business.
Costs arising from the investigation are not yet known, but auditors EY state: "There are material uncertainties relating to events or conditions that...may cast significant doubt on the company’s ability to continue as a going concern."
The Bank of London operates on three fronts: taking on established banks in the market for clearing and settlement; delivering transactions banking services for the corporate market; and fielding a banking-as-a-service offering for companies wanting to embed payments into their products.
Since its public launch in 2021, the loss-making bank has signed up more than 4500 businesses and amassed over £500 million in client deposits.
However, it has had a torrid year: in September by a winding up order from UK tax authorities over unpaid bills just days after founder Anthony Watson stepped down as CEO.
At the time, the UK clearing bank insisted that the failed payment was due to an 'administrative error' and that Watson's decision to step aside was unrelated.
In connection with this the startup revealed that it had secured £60 million in fresh capital, leading to a new ownership structure led by Mangrove Capital Partners, and a new board, alongside a replacement for Watson.
In a statement on the latest news, a bank spokesperson says: "These accounts relate to a financial year in which the Bank operated under entirely different leadership. Since then, under new ownership and with new leadership - and having secured £57m of Mangrove Capital-led funding and with a commitment of a further £25m - the Bank has embarked on a comprehensive transformation.
“This transformation has seen the Bank’s governance greatly strengthened with a reconstituted Board designed for robust oversight and strategic leadership; a new executive team with a new CEO, CFO, CRO and Chief of Staff & Transformation now in place; a refined strategy focused on the UK payments market; the development of a forward-looking technology roadmap delivering smarter, more secure business banking solutions; and enhanced products and services standards built to meet the evolving needs of businesses.
“In January 2025, we were pleased to welcome Christopher Horne as CEO following more than 25 years at Credit Suisse in a variety of leadership roles, most recently as CEO of its UK business. Today, we are also delighted to confirm the appointment of Tony Bullman as CFO. Combined, Christopher and Tony bring nearly six decades of leadership experience in the financial services sector. Under their stewardship, the Bank is well placed to deliver long-term sustainable value for all stakeholders.”