Viola Money (Europe) Limited
United Kingdom
On 14 December 2021, the UK Financial Conduct Authority imposed requirements on Viola Money (Europe) Limited, an authorised EMI under the Electronic Money Regulations 2011, ordering it to cease all regulated electronic money and payment services. The FCA cited serious concerns about the firm's business operations and its dealings with clients. This was followed by a special administration order on 21 December 2021 under the Payment and Electronic Money Institution Insolvency Regulations 2021, with joint special administrators appointed to facilitate the return of customer funds. The action effectively shut down Viola's operations and placed it into an insolvency process designed specifically for payment and e-money institutions. An August 2023 update noted a change in administrators, indicating the wind-down process remained ongoing well after the initial enforcement.
Verified from source: The FCA imposed requirements on Viola Money (Europe) Limited on 14 December 2021, requiring it to cease all regulated electronic money and payment services due to serious concerns around the way Viola operated its business, preventing the firm from dealing on behalf of its clients. This was followed by a special administration order on 21 December 2021.
- Demonstrates the FCA's willingness to take swift, severe action against EMIs with operational and client-dealing concerns
- Highlights risks for fintech and BaaS models relying on EMI licensing in the UK
- Signals increased regulatory scrutiny of electronic money institutions' safeguarding and operational controls
- The use of the Payment and Electronic Money Institution Insolvency Regulations 2021 sets a precedent for how failing EMIs are wound down