Wirecard’s U.K. Subsidiary Gets Approval to Resume Activity
Wirecard’s British unit will be allowed to resume activities after it was able to “meet certain conditions.”
(Bloomberg) -- Wirecard AG’s British unit will be allowed to resume activities after the subsidiary of the troubled German fintech was able to “meet certain conditions,” the U.K.’s Financial Conduct Authority said.
Wirecard filed for insolvency late last week and the company has faced a management upheaval after investigations revealed that 1.9 billion euros ($2.1 billion) previously reported as cash were missing from its accounts and probably never existed. Since the revelations, Wirecard’s Chief Executive Officer Markus Braun resigned and was arrested.
Last Friday, the FCA told the company’s U.K. unit to cease its activities and as a result customers’ accounts were frozen. On Monday, the regulator said in a statement that the company had resolved the issues and “customers will now, or very shortly, be able to use their cards as usual.”
Wirecard has lost about 90% of its value since news of the accounting scandal on June 18.
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