Vol 20 (2023) - Issue 2

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Topping up the Pool: Making Sense of the Law Relating to Payment Services and Electronic Money Insolvencies

Synopsis
Payment Institutions and Electronic Money Institutions are two types of fintech business that are rapidly increasing in number. Insolvencies of these institutions are particularly complex, due in part to the unique asset safeguarding regimes to which they are subject, which differ from the FCA client money regime under CASS. This article explains and considers those regimes, and describes the significance of recent High Court and Court of Appeal judgments in relation to their operation. It also considers the questions that remain to be resolved following those judgments, the recently-introduced special administration regime and how insolvencies and restructurings in this sector may develop in coming years.