UK E-Money Institution ePayments Systems Enters Special Administration

ePayments Systems Limited (EPS), an electronic money institution authorised by the UK Financial Conduct Authority to issue e-money under the Electronic Money Regulations 2011, entered special administration on 15 October 2026, the FCA announced. Mark Boast and Allister Manson of Opus Restructuring LLP were appointed as joint special administrators.

The appointment was made pursuant to the Payment and Electronic Money Institution Insolvency Regulations 2021 (PEMIIR), according to a notice published by the joint special administrators. EPS remains authorised by the FCA and subject to regulatory requirements under the Electronic Money Regulations 2011 during the administration.

The FCA stated that, as the firm continues to be authorised, it “will engage with the special administrators and seek the best outcome for customers.” The special administrators are now responsible for EPS, including managing customer claims against the firm and returning funds to customers where possible. They are officers of the court, must comply with insolvency law, and are regulated by their own professional bodies, while the FCA continues to act as EPS’s regulator.

The FCA describes the special administration regime introduced by PEMIIR for payment and e-money institutions as similar to an ordinary administration, with additional objectives of returning customer funds as soon as reasonably practicable and ensuring timely engagement with payment systems operators and the authorities, including the FCA. The administrators’ notice lists three statutory objectives: ensuring the return of customer funds as soon as is reasonably practicable; ensuring timely engagement with market infrastructure bodies and the financial authorities; and either rescuing the institution as a going concern or winding it up in the best interests of its creditors.

Regulatory History and Trading Cessation

On 13 February 2020, EPS suspended all of its activities, including accepting new registrations, after an FCA review of the company’s anti-money laundering systems and controls identified weaknesses requiring urgent remediation, the company said in a customer FAQ published the following day. The company stated at the time that all customer funds were safeguarded in line with its terms and conditions, that it was not subject to any criminal action, and that it remained authorised by the FCA.

EPS ceased all customer trading activity in September 2022 and since then had been in the process of returning safeguarded customer funds in line with FCA guidance, according to the administrators’ notice. Following previous regulatory action, the directors concluded that the company was no longer viable, and the company determined it would be beneficial for customers for EPS to enter protective special administration.

ePayments Systems Ltd is registered in England and Wales under company number 08134141 and holds FCA firm reference number 900172.

Customer Funds and Claims Process

According to the administrators’ notice, customer accounts have been frozen, access to EPS’s trading platform has been disabled, and customers cannot request withdrawals, cancel existing transactions, or enter into new transactions. The company has ceased to trade and cannot accept new instructions or funds from prospective customers, who the notice says will need to find an alternative provider should they require the services the company used to provide. The administrators said their immediate priority is to take control of relevant funds and to undertake a reconciliation of funds held in safeguarded accounts against customers’ relevant funds. They stated that the timing and quantum of any return to customers is uncertain and that distributions will depend on several factors, including the remaining balance in the customer funds account and the costs associated with returning funds.

The FCA confirmed that the Financial Services Compensation Scheme does not cover payment services. E-money firms are instead required to protect customer money through a requirement known as safeguarding, meaning the firm was required to hold money separately for its customers. When EPS provided regulated payment services, it was required to hold customers’ money separately from its own, in the manner set out in the EMRs and the PSRs, a measure the notice describes as a key consumer protection. The special administrators will assess all funds held by the firm to confirm the current position.

Customers who believe they hold safeguarded funds should email the administrators at [email protected] advising of the total sum they believe is held by EPS, together with any supporting documentation, according to the notice, which cautions that providing such information does not constitute proof of claim and will not accelerate return. The FCA said the special administrators will gather information from creditors and customers about payments made to, or owed by, EPS and will provide more information on how to make a claim in due course. The notice asks trade creditors and suppliers who believe they are owed money to submit claims with supporting evidence to the same address so they receive all notices and updates on the progress of the administration and the prospects of a return to creditors. It adds that existing obligations under contracts between EPS and its contract counterparties remain legally binding and in full force and effect unless and until discharged or addressed by the joint special administrators.

Customers who have made complaints against the company may have claims as creditors, according to the notice, including those waiting for a response to a complaint, those who received a final response letter from the company with an offer of compensation they have not returned, and those who have taken a complaint to the Financial Ombudsman Service (FOS). Customers who have already referred a complaint to the FOS do not need to take any further action and will be contacted by the FOS regarding next steps.

The FCA cautioned that customers approached by a company offering to help recover their money should proceed with caution, stating that “for most of the firm’s clients, there will be no benefit in involving a third party in making a claim.” Both the FCA and the administrators warned customers to remain alert to the possibility of fraud: anyone contacted unexpectedly by someone claiming to be from EPS, Opus, or the FCA should end the call and make contact directly using verified contact details. The administrators added that neither EPS nor the joint special administrators will ever ask for bank details over the phone.