On 21 December 2021, a special administration order was made by the Court, in relation to Viola Money (Europe) Limited, under the 2021 Payment and Electronic Money Institution Insolvency Regulations.
Viola Money is an authorised electronic money institution, authorised by the FCA under the Electronic Money Regulations 2011 (EMRs).
The special administration process includes provisions to facilitate the return of customer funds by the 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 the FCA identified several serious concerns around the way Viola operated its business.
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.