Segregation obligations in Electronic Money Regulations 2011 held not to create trust (Re Ipagoo LLP)

Table of contents

• What are the practical implications of this case?
• What was the background?
• What did the court decide?
• Case details

Article summary

Restructuring & Insolvency analysis: The court held that the Electronic Money Regulations 2011 (EMR), SI 2011/99 do not create a statutory trust. The case will be of interest to electronic money institutions, and potentially also consumers, to ensure that the ‘asset pooling’ features of the EMR are complied with prior to any insolvency event occurring. The decision of the Court of Appeal appears to ‘close the book’ on the issue of whether a statutory trust arises, and in doing so reconciles the differences between the first instance decisions. Written by Samuel Parsons, barrister at Guildhall Chambers.