Insights

The EML Payments (ASX:EML) share price is falling today. Here’s why

More nasty surprises from EML Payments’ PFS acquisition have been sprung…
The post The EML Payments (ASX:EML) share price is falling today. Here’s why appeared first on The Motley Fool Australia. –

The EML Payments Ltd (ASX: EML) share price is moving south on Friday on its latest regulatory news.

At the time of writing, shares in the financial services company are trading down 2.48% to $3.54.

The EML share price is now 30% lower than it was prior to the Central Bank of Ireland voicing its concerns over anti-money laundering/counter-terrorism financing compliance.

Cough up the cash

Investors have been blindsided once again by issues stemming from the company’s acquisition of Prepaid Financial Services (PFS).

According to the release, EML has identified historical deficiencies in cash for dormant and expired e-money accounts. Typically, these funds would be held in safeguarding accounts for six years after account expiration.

Additionally, the company explained these deficiencies pre-date the acquisition of PFS UK – which took place on 31 March 2020 and saw the EML share price soar by 70%. As a result, EML has reported the issue to the Financial Conduct Authority. The company expects to provide further details to the regulator over the coming weeks.

At this point in time, EML does not expect the event to have an impact on its profit and loss account. However, it does expect it will be required to inject £14.1 million ($26.6 million) into safeguarded accounts. At the end of June EML reported having $140 million in cash.

The safeguarded funds might be released back to the company if the accounts are not revived from a dormant state over an extended period.

EML share price damage

This latest development is in addition to the ongoing inspection by the Central Bank of Ireland. At this stage, shareholders are none the wiser regarding this matter.

Additionally, these matters come at an inconvenient time as EML tries to acquire Sentenial Limited and Nuapay. This acquisition remains subject to a nod from the Autorité de Contrôle Prudentiel et de Résolution (ACPR). Last we heard, the company expects the acquisition to be completed in the first quarter of FY22.

Finally, the regulatory matters have put a dent in the EML share price. Investors are down 14.9% since the start of 2021.

The post The EML Payments (ASX:EML) share price is falling today. Here’s why appeared first on The Motley Fool Australia.

Should you invest $1,000 in EML Payments right now?

Before you consider EML Payments, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and EML Payments wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Two months on, what is the outlook for the EML Payments (ASX:EML) share price?
The EML Payments (ASX:EML) share price surges 5% today
The 3 ASX shares that top brokers just upgraded to “buy”

Here are the 5 worst performing ASX 200 tech shares from FY21

The EML Payments (ASX:EML) share price zoomed 4% higher today

Motley Fool contributor Mitchell Lawler owns shares of EML Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended EML Payments. The Motley Fool Australia owns shares of and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!