Barclays fined £783,800 for collapsed payments firm Premier FX

Rick Steves

“Premier FX, which handled money on behalf of other people, presented particularly high risks of financial crime and fraud.”

Barclays FX

The Financial Conduct Authority (FCA) has fined Barclays £783,800 for oversight failings in its relationship with collapsed payments firm Premier FX, of which Barclays was the sole banker in the UK.

The bank agreed voluntarily to cover the losses of Premier FX customers whose claims have been accepted by Premier FX’s liquidators, with distribution amounting to 9p for every £1 lost, which means a voluntary payment of £10,076,943.75 by the end of March 2022. All 167 customers of Premier FX with accepted claims will have 100% of their money returned.

Still, the FCA is fining Barclays £783,800 because the bank failed to make enquiries to ensure that Premier FX’s actual business activity aligned with Barclays’ expectations and did not identify that Premier FX’s internal controls were deficient.

Premier FX censured instead of fine

Premier FX failed to safeguard its customers’ money and seriously misled its customers about the services it was authorized to provide.

The FCA censured the firm in February 2021 instead of imposing a substantial financial penalty because Premier FX was in liquidation and there was a significant liability to its creditors, most of whom are consumers.

Mark Steward, Executive Director of Enforcement and Market Oversight, commented: “Premier FX, which handled money on behalf of other people, presented particularly high risks of financial crime and fraud.

“Barclays was aware of these high risks in providing banking services to Premier FX but failed to take reasonably appropriate steps to mitigate those risks. Barclays’ agreement to meet the deficiency in Premier FX’s funds mitigates the actual losses to Premier FX’s customers. This is a significant step to the credit of the bank and has reduced substantially the sanction that otherwise would have been imposed.”

Barclays enhanced institutional FX platform

In 2021, Barclays rolled out new products and features for its institutional FX trading platform, BARX FX.

The enhanced solution now leverages BARX Book, which is part of BARX Gator, to gives clients access to unique principal liquidity streams, as well as an increased number of external liquidity providers.

Gator Adapt was also introduced to address institutional algo needs. This one in particular allows clients to manage the trade-off between arrival price slippage and execution price risk and clients have the flexibility to choose an execution style which is intended to minimize market impact for a given level of risk.

BARX Direct, the third new feature, is the platform’s improved low latency solution which uses innovative pricing models, predictive analytics, and an optimized co-location strategy.

The institutional FX platform enables clients to optimize execution performance by accessing deep pools of liquidity across equities, fixed income, futures and FX.

Read this next

Executive Moves hires Ahmed Negm, a popular market analyst on CNBC, Sky News, Bloomberg’s Asharq

“Ahmed’s expertise and passion for understanding the intricacies of the financial markets will be invaluable as we continue to grow our client base and expand into new jurisdictions.”

Institutional FX

ATFX uses blockchain to help clients verify IBs and vice versa

ATFX said it has been working on the IB verification project for a few months.

Industry News

Research market in dire straits as SEC’s ‘no-action’ letter on MiFID II lapses in June – survey

“Of all the regulatory news that has hit the research market in the last few months, this is the one change that will fundamentally impact what fund managers can access and pay for in future.”

Executive Moves

Wombat appoints ex-abrdn Richard Charnock as UK platform turns to Europe

Launched in 2019, Wombat provides a dedicated mobile investing platform – available on both iOS and Android – offering users both range and choice.

Institutional FX

Broadridge integrates Point Focal’s pre and post-market reports

“Point Focal provides a unique lens on the market which will help add alpha to the trading process and these new insights will rapidly improve performance while mitigating execution risk and simplify trading.”


XCritical integrates with Brokeree Solutions, allowing its clients to launch copy trading 

The forex software provider – XCritical, has integrated Social Trading by Brokeree Solutions into their CRM system.

Industry News

HKEX partners with Saudi exchange for cross listings, ESG, Fintech

“The Kingdom of Saudi Arabia, and the broader Middle Eastern region, are one of the world’s most dynamic and exciting economic and innovation hubs and also home to some of the fastest growing investor groups in the world. Hong Kong and HKEX’s markets offer significant opportunities for international investors and corporates, including unrivalled connectivity to the Mainland Chinese markets through our unique Connect programmes. This agreement signals the beginning of even greater collaboration between our companies and our home markets, and we look forward to exploring many future areas of cooperation.”

Executive Moves

CMC Markets Connect relocates APAC team led by Peter Foster to Singapore

“Singapore is a vibrant city and is now undoubtedly seen as Asia’s leading financial hub. The decision to bolster the CMC Markets Connect team here will help us cement the company’s position as a leading provider of multi asset liquidity and comprehensive trading solutions across the region.”

Retail FX

Italian watchdog red flags Olympus Brokers, UnicoFX and Allfina Group

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.