UK special administration proceedings have placed outstanding ePayments customer balances and Jarvis Investment Management client assets under insolvency practitioners’ control. Jarvis entered the process on 14 October 2026, followed by ePayments on 15 October. As of 16 October, neither case had a confirmed customer-asset shortfall, recovery percentage or final distribution timetable.
Key Takeaways
- ePayments customers depend on safeguarded funds, not FSCS protection for electronic money balances.
- Assets remaining at Jarvis cannot currently be traded or withdrawn while administrators assess client holdings.
- Jarvis Securities has lost its operating income, and its £2.5 million cash balance is not an assured shareholder payout.
Table of Contents
- UK special administration brings different customer protections
- ePayments moves from prolonged closure to insolvency
- What happens to investments still held at Jarvis
- Jarvis Securities faces a separate shareholder decision
- Conclusion
UK special administration brings different customer protections
Both firms remain authorised by the Financial Conduct Authority, but their customers face different recovery frameworks. Continued authorisation does not mean normal services remain available or that repayment is guaranteed.
ePayments is an electronic money institution. Its customer protection rests on safeguarding requirements intended to separate relevant customer funds from the firm’s own money. Electronic money balances are not covered by the Financial Services Compensation Scheme, and safeguarding does not ensure immediate or complete repayment.
Jarvis clients may qualify for FSCS investment protection covering eligible shortfalls in client money or custody assets and certain distribution costs, up to £85,000. The scheme had classified Jarvis as under investigation on 16 October; it had not determined compensation eligibility or opened customer claims.
An inability to access assets is not, by itself, evidence that they are missing. Administrators must establish what each firm holds, reconcile customer entitlements and determine how funds or investments can be returned.
| Item | Details |
|---|---|
| February 2020 | ePayments suspended operations following an FCA review identifying weaknesses in anti-money laundering systems and controls. |
| 16 September 2022 | Jarvis agreed to an FCA voluntary requirement restricting activities it could undertake without regulatory consent. |
| October 2022 | ePayments repayments were paused, a development the company disclosed in January 2023. |
| July 2025 | Jarvis completed the sale of its retail execution-only brokerage business to Interactive Investor for consideration of up to £11 million. |
ePayments moves from prolonged closure to insolvency
Mark Boast and Allister Manson of Opus Restructuring LLP have been appointed joint special administrators of ePayments Systems Limited. They take responsibility for outstanding customer claims after years of restrictions and an unsuccessful effort to complete an orderly closure.
The company announced in September 2022 that it would close permanently rather than restart operations. Returning customer balances subsequently encountered further delays, including a pause while the company reviewed customer information and know-your-customer compliance.
Under the Payment and Electronic Money Institution Insolvency Regulations 2021, administrators must seek to return customer funds as soon as reasonably practicable. The FCA has not disclosed the outstanding customer balance or whether safeguarded funds are sufficient to meet all claims.
What happens to investments still held at Jarvis
The FCA’s Jarvis client guidance confirms that customers cannot trade or otherwise use money and custody assets held with the firm while administrators assess the position. Adam Stephens and Philip Hemming of S&W Partners LLP are managing the special administration.
Most customers transferred to Interactive Investor during 2025 are unaffected. For those with holdings still at Jarvis, administrators must decide whether to return assets directly or transfer them to another broker.
Distribution costs, including administrators’ fees, may be deducted from client money or assets if there are insufficient funds elsewhere to pay for their return. Eligible clients may receive FSCS support for those costs.
Jarvis’s existing customer redress programme has also stopped. Certain outstanding redress claims will be unsecured creditor claims, while potential FSCS compensation remains under investigation.
Jarvis Securities faces a separate shareholder decision
The administration leaves AIM-listed parent Jarvis Securities without operating income and classified as an AIM Rule 15 cash shell. In its 16 October announcement, the company reported approximately £2.5 million of unaudited cash at 30 September 2026 and said it expected no shareholder value from its former operating subsidiary’s administration.
The company has six months to complete a qualifying reverse takeover or become an investing company, with the latter requiring a capital raise of at least £6 million. Failure to complete a qualifying transaction would lead to share suspension, followed by cancellation after a further six months without a transaction.
Directors previously proposed cancelling the AIM listing and distributing remaining available reserves, but will consider credible transaction proposals before finalising that approach. Liabilities, continuing expenses and legally distributable reserves will determine any eventual shareholder payment; the reported cash balance alone does not establish its size.
Conclusion
The next confirmed milestone is a letter to Jarvis clients within eight weeks of the administrators’ appointment explaining the planned return of money and assets and the claims process. For ePayments, the outstanding questions remain the reconciliation of safeguarded funds and the timing of repayments; no final distribution timetable has been confirmed.
Read More News
Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
