Argentex LLP enters special administration

The Payment and Electronic Money Institution Insolvency Regulations 2021 introduced a new special administration regime for payment and e-money institutions. This is similar to an ordinary administration. However, special administrators have an additional objective of returning customer funds as soon as reasonably practicable. 

Argentex is authorised to provide regulated electronic money and payment services. It is also authorised to provide wealth management services.

Funds received from customers in relation to electronic money and payment services, as well as client money in relation to wealth management services were required to be held separately from the firm’s own funds (and each other) in line with the electronic money regulations (for electronic money and payment services) and the FCA’s rules (for wealth management services).

These rules are in place to protect customers’ money in the event of a firm failure. Argentex was required to comply with these requirements.

The Joint Special Administrators are in the process of carrying out an assessment of the funds received from customers held with Argentex under the electronic money regulations (for electronic money and payment services) and FCA rules (for wealth management) to confirm the current position. Following the assessment, the Joint Special Administrators will work to return funds back to customers.

There are costs associated with returning such funds back to customers. Under the law, these costs will be deducted from the relevant funds or client money held by Argentex.

Customers should contact the Joint Special Administrators for further information. Their contact details are [email protected].

FSCS protection only applies to certain types of activity. This does not include electronic money and payment services.

At this stage, FSCS is working with the Joint Special Administrators to determine whether FSCS-protection may exist for eligible customers in relation to client money Argentex holds as part of its wealth management services. This work is ongoing. 

Following the special administration order, the Joint Special Administrators are responsible for Argentex, but Argentex continues to be FCA authorised.

The Joint Special Administrators are officers of the court and need to comply with all insolvency law. The individuals appointed are authorised to act as licensed insolvency practitioners. The Joint Special Administrators have statutory objectives which include engaging with authorities, including the FCA.

We will work with the Joint Special Administrators as appropriate.

Customers should contact the Joint Special Administrators at [email protected]

Be wary if you are approached by a company offering to help you recover your money. For most of the firm’s customers, there will be no benefit in involving a third party in making a claim.