The Bank of London has announced that it is under investigation by UK regulators, a situation that its auditors suggest may create “significant doubt” about the bank’s future.
Following the late filing of its accounts, the UK clearing bank disclosed that the Prudential Regulation Authority (PRA) informed them about the investigation concerning certain historical matters prior to a change in ownership. This ownership change occurred last year when the group now known as Fellesskap Group & Holdings acquired the business.
While the costs associated with the investigation remain unknown, auditors from EY have indicated material uncertainties that could affect the company’s ability to continue as a going concern.
The Bank of London operates in three key areas: competing with established banks for clearing and settlement, offering transaction banking services for corporate clients, and providing a banking-as-a-service model for companies integrating payment solutions into their products. Since its public launch in 2021, the bank has garnered over 4,500 business clients and accumulated more than £500 million in deposits.
However, the past year has been challenging. In September, the bank faced a winding-up order from UK tax authorities due to unpaid bills, occurring shortly after founder Anthony Watson stepped down as CEO. The bank attributed the missed payment to an “administrative error” and stated that Watson’s departure was unrelated.
In light of these events, the bank has secured £60 million in new funding, led by Mangrove Capital Partners, which has resulted in a new ownership structure and board, as well as a replacement for Watson.
A spokesperson for the bank emphasized that the accounts in question pertain to a financial year under previous leadership. They asserted that, with new ownership and leadership, including £57 million in Mangrove funding and a further commitment of £25 million, the bank is undergoing a significant transformation.
This transformation includes strengthened governance through a reconstituted board, the establishment of a new executive team with a CEO, CFO, CRO, and Chief of Staff & Transformation, and the development of a refined strategy focused on the UK payments market. They are also implementing a technology roadmap aimed at delivering improved business banking solutions and advancing product standards to meet the evolving needs of businesses.
In January 2025, Christopher Horne joined as CEO, bringing over 25 years of experience from Credit Suisse, along with the recently appointed CFO Tony Bullman. Together, they aim to position the Bank of London for long-term sustainable success for all stakeholders.