Chairmans Financial has entered into an exclusive agreement with Ipagoo administrators FRP Advisory to buy Ipagoo, the digital bank that recently fell into administration.
The announcement about entering administration came after the Financial Conduct Authority (FCA) ordered the UK FinTech firm to cease all regulated activities in July. The FCA issued the order due to concerns about if Ipagoo properly segregated customer money. Ipagoo fell into administration just a few days later.
Chairmans Financial, which was founded by a former ING banker and an energy executive this year, plans to buy 100% of the company from Ipagoo’s parent company Orwell Group. The FCA must approve the sale in order for it to go through. The UK branch was set up for the sole purpose of this transaction. There is also a European branch of the company set up to invest in European companies.
Jordan Oxley, managing director of Chairmans Financial, told the Financial Times, “We do feel that there is a reasonable path to return of operations, both from a financial stability and governance point of view.”
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