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Insolvency of Ipagoo: the High Court finds no statutory trust for electronic money holders

The High Court has found that the Electronic Money Regulations (EMRs) do not impose a statutory trust over customer funds.

The FCA has been granted permission to appeal this decision. It would be prudent for e-money institutions and their stakeholders to wait for the decision on appeal before proceeding entirely on the basis that there either is or is not a statutory trust.