Digital current account Loot Financial Services Limited has entered administration.
Customers will still be able to use their accounts as normal and funds are protected and held by Wirecard Card Solutions at a regulated credit institution.
As of 28th May, Loot’s customers have been given 60 days’ notice that the product will be closing, and services will no longer be provided beyond that point.
Customers are now being asked to withdraw their electronic money funds and to make alternative arrangements.
The FCA is now in contact with Wirecard Card Solutions to ensure that Loot’s customer funds will continue to be safeguarded and that customers are given information on how to access their funds.
The company has appointed Henry Anthony Shinners and Adam Henry Stephens of Smith & Williamson LLP as joint administrators.
This comes after Loot raised investment from a number of investors including Bó, SpeedInvest, Global Founders Capital and Portage.
Bó — which is being developed by NatWest — invested a total of £5m into Loot and had a shareholding of around 25%.
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