Allied Wallet Limited

Provisional Liquidators appointed over Allied Wallet.

27 August 2019 update

With effect from 12pm on 27 August 2019, the High Court appointed Shane Michael Crooks, Emma Sayers and Malcolm Cohen, all of BDO LLP, as joint provisional liquidators of AWL following an application by the FCA.

AWL is authorised and supervised by us to issue e-money and provide payment services under the EMRs. Some of the activities of AWL are also subject to the Payment Services Regulations (PSRs).

Why did the FCA take this action now?

Following concerns about the firm’s arrangements, in particular on how it is safeguarding customers’ funds, we applied to the High Court to place the firm into provisional liquidation to protect the interests of AWL’s customers.

The provisional liquidators have a number of powers and they are appointed to investigate the assets of the company and customer funds and report to the Court. The joint provisional liquidators will gather as much information as possible from creditors and customers of AWL about payments made to, or owed by, the firm.

Although in provisional liquidation, we continue to regulate AWL. We are working with the joint provisional liquidators to minimise harm to customers where possible.

What should I do if I have money with AWL?

Customers should contact the joint provisional liquidators if they are concerned, have any questions or for any updates.

If you believe you are owed money by the firm should contact Shane Michael Crooks, Emma Sayers and Malcolm Cohen of BDO LLP as soon as possible:

Customers can also contact our consumer helpline for further information.

What is safeguarding?

Safeguarding is a key consumer protection measure within the EMRs and PSRs. The purpose of safeguarding is, to protect customer money if a firm fails.

Safeguarding requires firms to protect customers’ funds received in exchange for e-money or payment services. A firm’s ability to effectively safeguard customers’ funds is critical to help ensure that customers’ money is protected if a firm fails.

These safeguarding requirements applied to AWL and were a condition of AWL’s authorisation. On 4 June 2019, we imposed requirements on AWL including a requirement not to dispose of any funds it holds in relation to e-money services to protect the interests of AWL’s customers. On the appointment of the provisional liquidators, we agreed to lift the requirements.

Are my funds protected by FSCS?

No. The Financial Services Compensation Scheme (FSCS) only applies to certain types of activity. This does not include issuing electronic money or payment services.

Under the EMRs and PSRs, there are rules on how customers’ money should be protected and these requirements are known as ‘safeguarding’.

What happens next?

The joint provisional liquidators were appointed on 27 August 2019. Subject to the findings of the provisional liquidators, the Court will consider next steps for AWL. This may include placing the firm into liquidation. Should the firm go into an insolvency process, the appointed insolvency practitioners will begin the process to distribute the company assets to creditors and customers in accordance with the relevant legislation.

Allied Wallet Limited (AWL) is authorised and supervised by the Financial Conduct Authority (FCA) to issue e-money and provide payment services under the Electronic Money Regulations 2011 (the EMRs).

10 June 2019 update

On 4 June 2019, the FCA imposed a number of requirements on AWL including:

  • the firm must not carry on any regulated activities
  • it must not dispose of its assets or any of the funds it holds in relation to e-money services
  • it must set out a statement on its website and communicate to customers that it is no longer permitted to conduct any regulated activities

This is to protect the interests of AWL’s customers. 

Any customer with questions should contact the firm.

Page updates

27/08/2019: Information added See 27 August 2019 update following joint provisional liquidators appointment