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London-headquartered fintech company Monneo, a provider of virtual IBAN accounts, has entered special administration.
Corporate restructuring firm FRP Advisory has been appointed joint special administrators to salvage customer funds from the insolvent fintech company.
Monneo, formed in 2016, provides ecommerce account services including banking, cards, FX and payouts.
It was told to cease all regulated payment services on 6 April “due to concerns that the firm was not meeting its conditions of authorisation”.
Monneo is authorised to provide payment services by the Financial Conduct Authority. However, customer funds are not protected by the Financial Services Compensation Scheme (FSCS).
Instead, Monneo was required to apply “safeguarding requirements”, rules which should see customer funds held separately.
Monneo’s most recent accounts – filed 31 March 2022 – show the company reported post-tax profits for the year of £918,412.
Shareholder funds were valued at £5.4m.
FRP Advisory said it will share more information with customers within eight weeks.
Monneo has partnered with other financial service firms, including cryptocurrency exchange Coinbase to allow invoices to be paid in crypto.
FRP Advisory did not immediately respond to a request for comment.