Special Administrators of JNFX Ltd

If you currently have funds that you believe are safeguarded by JNFX, please immediately contact the JSAs at JNFX@azets.co.uk to advise of the total sum of funds or assets you believe is held by JNFX together with all supporting documentation you hold.

If you do not currently have any funds or assets held by JNFX but wish to employ the Company’s services, please note that JNFX cannot accept any new instructions or funds from prospective customers. You will need to find an alternative provider should you require the services that the Company used to provide.

In the short term, you will not be able to transfer your funds held with JNFX as accounts have been frozen. The JSAs recognise that this may be a difficult position for customers to be put in. One of the JSAs’ key objectives is to resolve this position as quickly as possible. The JSAs’ immediate priority is to take control of relevant funds and undertake a reconciliation of funds held in safeguarded accounts and the customers relevant funds.

As at the date of our appointment we are not able to confirm whether customers are likely to suffer a shortfall in funds due to them.

At this stage, the timing and quantum of any return to customers is uncertain or whether there will be any return at all. Distributions will depend on several factors, including the remaining balance in the customer funds account and the costs associated with returning funds to customers.

We will update you as soon as we have more information.

If you currently or have previously provided services or supply to JNFX and believe that you are a creditor, please email the JSAs’ team at JNFX@azets.co.uk to submit your claim together with any evidence to support your claim.

This will ensure that you receive all notices and important updates on the progress of the Special Administration and prospects of a return to creditors.

If you have made a complaint against the Company, you may have a claim as a creditor. However, as the Company is insolvent, we anticipate that there will be insufficient funds to enable any compensation claims to be paid in full.

This includes customers:

• Waiting for a response to their complaint;
• Who have received a final response letter from the Company with an offer of compensation but haven’t returned it;
• Who have taken their complaint to the FOS.

You should first contact the Joint Special Administrators for more details about how complaints or claims will be dealt with.

If you have already referred a complaint to the FOS, you do not need to take any further action at the moment. The FOS will contact you in due course regarding the next steps.

The directors have concluded that due to mounting creditors of the Company and particularly a creditor obtaining judgment against the company in the sum of approximately £2.6 million plus interest and costs of approximately £750,000, the Company is unable to avoid insolvency and applied for JNFX to enter into Special Administration with the key focus to safe guard client funds.

The main objectives for the JSAs is primarily to:

• Ensure the return of client assets as soon as is reasonably practicable;
• Ensure timely engagement with market infrastructure bodies and the financial authorities;

To either:

• Rescue the Company as a going concern; or
• Wind it up in the best interests of creditors.

At this early stage the JSAs are unable to determine the extent of any likely dividend distribution to creditors or suppliers.

The Payment and Electronic Money Institution Insolvency Regulations 2021 (‘PEMIIR’) were introduced to improve the process of returning funds to customers where a payment services or electronic money institution fails.

A payment services or electronic money institution for these purposes is a firm which holds safeguarded funds and certain permissions from the Financial Conduct Authority (‘FCA’).

JNFX is classed as an Authorised payment institution and therefore falls under the ambit of PEMIIR.

1. To ensure the return of customer funds as soon as is reasonably practicable;
2. To ensure timely engagement with market infrastructure bodies and the financial authorities; and
3. To either, rescue the institution as a going concern or to wind it up in the best interests of its creditors. It should be noted that the directors took the decision that the company should cease to trade on 20th November 2025.

Funds received from customers in relation to payment services, which are required to be held separately from the Company’s own funds (and each other) in line with the Payment Service Regulation 2017.

The JSAs will need to undertake a review of the business to consider either to rescue the business as a going concern or to wind it up in the best interests of its creditors.

If you believe that you are owed money by JNFX then, you will need to lodge a claim with the JSAs. You will shortly receive communications from the JSAs setting out our claims notification process.

Customers are those who used JNFX’s payment services. Creditors are suppliers of the business and other contract counterparties of JNFX.

In accordance with paragraph 23(5) of the Payment Services Regulation 2017, an authorised payment institution must keep relevant funds segregated from any other funds that it holds.

JNFX operated a system of segregating customer funds from it’s office funds as a way of safeguarding customer funds.

The JSAs’ duties and objectives will be strictly bound by the provisions of the PEMIIR.

Practically, the JSAs are and will be in regular communication with the FCA (who will continue to act as JNFX’s Regulator) to update them on the strategy and progress of the Special Administration. The JSAs are regulated by their own professional bodies and are acting in the capacity of officers of the Court.

It should be noted that JNFX remains authorised by the FCA and subject to the FCA’s rules.