Blog

Silverbird Global Limited (SGL) enters special administration

On March 13, 2024, Silverbird Global Limited (SGL) underwent special administration under the Payment and Electronic Money Institution Insolvency Regulations 2021. Daniel Conway and Geoffrey Rowley from FRP Advisory Trading Limited have been appointed as joint special administrators (JSAs).

SGl offers foreign exchange and payment services to corporate clients and acts as an Electronic Money Directive (EMD) Agent for The Currency Cloud Limited (TCCL), facilitating the distribution and redemption of electronic money (e-money) and providing specific payment services on behalf of an e-money institution. SGL holds authorization from the FCA to deliver payment services under the Payment Services Regulations 2017 (PSRs).

For direct customers of SGL who suspect they are owed money or have inquiries, please reach out to the JSAs.

Contact Email: silverbird@frpadvisory.com

The JSAs are tasked with managing customer claims and endeavoring to reimburse customers where feasible. Their responsibilities include:

  • Issuing a report to creditors within 8 weeks of their appointment, containing details of SGL’s background and the JSAs’ proposals.
  • Collecting pertinent information from SGL creditors and customers regarding payments to or from SGL.

Customers of TCCL will receive updates regarding their accounts and services. Funds remain safeguarded and are not part of the special administration; however, customers experiencing issues accessing their funds can contact TCCL directly.

Contact Email: support@currencycloud.com Phone: +44 (0) 203 597 4800

Further information for customers is provided below, and our consumer helpline is available for assistance.

FAQ

What is special administration?

The Payment and Electronic Money Institution Insolvency Regulations 2021 introduced a distinct special administration framework tailored for payment and e-money institutions.
In essence, special administration shares similarities with ordinary administration, yet special administrators are tasked with an additional objective: to promptly return customer funds as feasibly and promptly as possible.
On March 11, 2024, SGL voluntarily entered into a Voluntary Undertaking (VU), imposing restrictions on its operational activities.
As the regulatory authority overseeing SGL’s conduct and prudential operations, we will maintain ongoing dialogue with the administrators and take necessary actions as warranted.


Are my funds protected by the Financial Services Compensation Scheme (FSCS)?

No, the protection offered by the Financial Services Compensation Scheme (FSCS) extends only to specific types of financial activities, excluding payment services.
Under the Payment Services Regulations 2017, which govern regulated payment firms, stringent requirements dictate the protection of customers’ funds through a process known as ‘safeguarding’.


What is safeguarding?

During its provision of regulated payment services activities, Silverbird Global Limited (SGL) was mandated to segregate customer funds.
The protocols for holding these funds are outlined in the Payment Services Regulations 2017 (PSRs) and are denoted as safeguarded funds.
Safeguarding is a fundamental consumer safeguard within the PSRs, aimed at shielding customer funds in the event of a firm’s insolvency.
The joint special administrators will conduct a comprehensive assessment of all funds held by SGL to differentiate between funds safeguarded for customers and those belonging to SGL.


Is the FCA overseeing the special administration?

Subsequent to the special administration order, the joint special administrators (JSAs) assume responsibility for Silverbird Global Limited (SGL), while SGL retains its FCA authorization.
The JSAs, acting as officers of the court, are bound by all insolvency regulations and are duly authorized to act as licensed insolvency practitioners.
Their statutory objectives include liaising with relevant authorities, including the FCA, and we will collaborate with the JSAs as necessary.


Be alert to scams

All customers are urged to remain vigilant against potential fraudulent activities.
If contacted via unsolicited calls purporting to be from Silverbird Global Limited (SGL), the joint special administrators (JSAs), or the FCA, it is advisable to terminate the call and directly contact the respective organization.

Do I need to use a third party to get my money back?

Exercise caution if approached by entities offering assistance in recovering funds.
For most of SGL’s clientele, involving third parties in the claims process is unlikely to yield benefits.
Should you have inquiries regarding the administration proceedings, please reach out directly to the administrators.

Leave a Reply