Mon, 03 Feb 2025 | ADMINISTRATION
Skipton-based Contis Financial Services has gone into special administration.
Founded in 2008, e-Money payments firm the Contis Group Ltd was acquired by German counterpart Solaris in 2022 after the latter secured a €190m Series D funding round.
However, in November 2023 Contis was fined €840,000 by the Bank of Lithuania – where it held an Electronic Money Institution licence – for failing to comply with the requirements for the prevention of money laundering and terrorist financing, as well as information security and business continuity risk management.
In September 2024 Solaris announced that it was to discontinue major parts of its EMI business, comprising Contis Group and its subsidiaries, including Contis Financial Services, which is regulated by the UK's Financial Conduct Authority.
As a result, CFSL began a wind-down of its operations, including the transfer of the Engage business to Suits Me which was revealed in November 2024. The wind down was scheduled by the company to be completed by April 2025.
However, a long-running and unresolved dispute with a third-party financial institution related to the release of certain customer safeguarded funds made this "unachievable."
According to its most recent results for the year to 31 December 2023 Contis Financial Services posted revenues of £13.4 million, down from £21.1 million the previous year. It made a loss before tax of £27.4 million compared with a £3 million profit before tax.
Directors of CFSL said they had to take the "difficult decision" to place CFSL into Special Administration.
Joshua Dwyer and Robert Spence, from Interpath Advisory, were appointed joint special administrators to the firm. They will seek to secure the release of the safeguarded funds, facilitate the distribution of safeguarded funds to customers, and complete the orderly wind down of CFSL's operations.
CFSL ceased trading immediately following the appointment of the special administrators.
Clients are advised that all customer accounts, including prepaid debit cards, have been frozen and customers are no longer able to make payments or receive receipts. Accounts will remain frozen whilst Interpath assesses the situation and identifies the best way to return funds to customers.
Customers are encouraged to set up alternative banking arrangements with another provider as soon as possible.
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