Contis Financial Services Limited (CFSL), an Electronic Money Institution (EMI) business regulated by the Financial Conduct Authority (FCA), has entered special administration.
The appointment of Joshua Dwyer and Robert Spence from Interpath Advisory as joint special administrators follows the announcement in September 2024 by CFSL’s ultimate parent company, Solaris, that it was to discontinue major parts of its EMI business, comprising Contis Group Limited and its subsidiaries, including CFSL.
As a result of this, Yorkshire-based CFSL commenced the orderly wind-down of its operations, including the successful transfer of the Engage business to Suits Me which was announced in November 2024. The orderly 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 in respect of the release of certain customer safeguarded funds has, in the company’s view, made this unachievable.
As a result, the directors of CFSL have taken the decision to place CFSL into special administration in order to provide the opportunity for the special administrators to 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.
Immediately following the appointment of the special administrators, CFSL ceased trading. Customers have therefore been 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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