Digital bank Ipagoo has collapsed into administration after all its accounts were frozen following the Financial Conduct Authority (FCA) ordered it to cease all regulated activities.
The order came after the British financial watchdog had received concerns about Ipagoo failing to properly segregate customer money. This is a basic requirement for all regulated financial firms. The regulator forced it to secure all its books and records, and file daily reports.
FRP Advisory has been appointed as administrator to the payment-services firm. FRP informed the Financial times that it was looking to transfer the digital bank’s business to another regulated firm.
“In addition to the current restrictions over its activities, Ipagoo has been suffering from a lack of working capital which left the directors with no choice but to enter the business into administration,” Jason Baker, an FRP partner who is one of the joint administrators, told the Financial Times. “Our priority is now to work closely with the regulators and the firm to complete the required reconciliation exercise with a view to returning client funds as soon as possible.”
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