FCA confirms Supercapital Ltd is in administration

Maria Nikolova

The funds of customers of Supercapital are not protected by the Financial Services Compensation Scheme.

The UK Financial Conduct Authority (FCA) has earlier today confirmed that payment services provider Supercapital Ltd has entered administration.

The regulator explains that on September 12, 2019, Supercapital ceased to provide any regulated business. On September 27, 2019, Kevin Goldfarb and Stephen Hunt of Griffins Insolvency Practitioners LLP were appointed as joint administrators of Supercapital.

Supercapital’s administrators are responsible for managing customer claims against the firm and distributing funds back to customers where possible. The administrators are required to provide a report to creditors within eight weeks of their appointment, the FCA says. The report will provide details of Supercapital’s history and the administrator’s proposals.

Those who have any questions regarding the administration process are advised get in touch with the administrators at [email protected]

The joint administrators will gather as much information as possible from creditors and customers of Supercapital about payments made to, or owed by Supercapital.

Importantly, the funds of Supercapital’s customers are not protected by the Financial Services Compensation Scheme (FSCS). This is because the FSCS only applies to certain types of activity. This does not include payment services.

Under the PSRs, there are requirements on how customers’ money should be protected and these requirements are known as ‘safeguarding’. When Supercapital provided regulated payment services activities it was required to hold money separately for those customers. The way in which this money needs to be held is set out in the PSRs and is referred to as safeguarded funds. The safeguarding requirements apply to Supercapital and the firm must comply with them at all times.

Safeguarding is a key consumer protection measure within the PSRs. The purpose of safeguarding is to protect customer money if a firm fails.

The FCA advises all customers to remain alert to the possibility of fraud. If you are cold called by someone claiming to be from Supercapital, Griffins or the FCA, please end the call and contact them directly. Those approached by a company offering to help them recover their money should proceed with caution. For most of the firm’s clients, there will be no benefit in involving a third party in making a claim.

Read this next

Digital Assets

Revolut receives FCA’s go-ahead to launch crypto trading

British fintech and banking firm Revolut has received a regulatory go-ahead to launch its cryptocurrency services in the UK.

Digital Assets

GBTC share is trading at 36% below bitcoin spot price

Grayscale Bitcoin Trust share has widened its discount relative to the underlying cryptocurrency held in the fund, the highest margin ever since its debut in 2013. Digital Currency Group’s flagship GBTC shares traded at a discount of 35.8% to net asset value (NAV) today.

Digital Assets

Crypto lender Nexo investigated by 8 US state regulators

State securities regulators in New York, California, Kentucky, Maryland, Oklahoma, South Carolina, Washington and Vermont are investigating crypto lender Nexo for allegedly failing to register its Earn Interest Product.

Metaverse Gaming NFT

Astar Network’s ad features 329 top brands to support Web3 in Japan

Blockchain innovation hub Astar Network is making strides in promoting the Web3 adoption worldwide. In yet another milestone, the smart contracts platform has run a national newspaper ad in Japan that set a new global record with participation from 329 blue-chip firms.

Digital Assets

Pyth Network welcomes onchain data from crypto market maker Auros

“By sharing our high-frequency trading data with a truly onchain decentralized network, we aim to foster innovation that will lead to better financial solutions for all participants.”

Digital Assets

Tokeny integrates Ownera to boost liquidity of tokenized assets

“The adoption of FinP2P will result in higher liquidity and better access to capital and assets by providing regulated firms with one secure point of connection to multiple digital asset networks across the globe.”

Digital Assets

BingX launches subsidy vouchers to cover user losses in copy trading

“With the introduction of copy trade subsidy vouchers, new users can easily try out trading strategies without incurring losses.”

Digital Assets

Talos expands sales team: Frank van Zegveld, Matt Houston, Hillary Conley

“The extensive leadership and industry expertise of these new hires will enable us to build long-lasting relationships as we continue to build out our global presence in EMEA and beyond.”

Executive Moves

FX and CFD broker Emporium Capital hires industry veteran Robert Woolfe as COO

His past experience within the FX and CFD industry includes top roles at Capital Index, London Capital Group, GKFX, ETX Capital, and IG.  “I’m delighted to be part of the Emporium Capital team and spearheading the brokerages global expansion plans”, he said about the appointment.

<