In re ipagoo LLP

Subject Matter

INSOLVENCY — Administration — Distribution of client money — Regulations requiring electronic money institutions to safeguard funds received in exchange for electronic money — Regulations also providing for electronic money holders to be paid from asset pool in priority to other creditors following insolvency event — Whether Regulations creating statutory trust in favour of money holders — Whether funds left unprotected because of institution’s failure to comply with safeguarding obligations forming part of asset pool — Electronic Money Regulations 2011 (SI 2011/99), regs 20, 21, 22, 24

[2021] EWHC 2163 (Ch); [2021] Bus LR 1469; [2021] WLR(D) 453, Ch D

INSOLVENCY — Administration — Distribution of client money — Regulations implementing EU Directives requiring electronic money institutions to safeguard funds received in exchange for electronic money by segregating and insuring them — Regulations also providing for electronic money holders to be paid from asset pool in priority to other creditors following insolvency event — Whether EU Directives requiring imposition of statutory trust in relation to funds — Whether domestic regulations imposing trust — Extent of asset pool if funds left unprotected because of institution’s failure to comply with safeguarding options — Whether including sum equal to funds not properly safeguarded — Electronic Money Regulations 2011 (SI 2011/99), regs 20, 21, 22, 24 — Parliament and Council Directive 2009/110/EC, art 7(1) — Parliament and Council Directive 2015/2366/EU, art 10(1)(2)

[2022] EWCA Civ 302; [2022] Bus LR 311; [2022] 2 All ER (Comm) 813; [2022] 2 BCLC 562; [2022] WLR(D) 112, CA

Appellate History