E-Money, Payment Services, and Insolvency

Hongbei Li of Latham & Watkins considers various issues which may arise upon an e-money institution’s insolvency, warning that unsecured creditors (which may include payment intermediaries) appear to be taking an enhanced credit risk where the institution has failed to comply with the Electronic Money Regulations 2011 and has not taken the necessary steps to safeguard e-money holders’ funds.

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