Premier FX issue gets raised before FSCS

Maria Nikolova

“We can certainly have a look at that specific scenario”, says Jimmy Barber of FSCS.

Several months have passed without any updates for customers of collapsed Premier FX, so the FinanceFeeds team was pleased to see that the matter has finally been back on the agenda of regulators.

On July 3, 2019, Caroline Rainbird, Chief Executive Officer, and Jimmy Barber, Chief Operating Officer, Financial Services Compensation Scheme (FSCS) appeared before the Treasury Committee of the House of Commons, to discuss the work of the FSCS.

The list of matters discussed during the meeting included the events around Premier FX (see video 10:25 – Ed.) Let’s recall that Premier FX Limited was placed into creditor’s voluntary liquidation in December 2018.

In its latest update to customers, the Financial Conduct Authority (FCA) said that it was continuing to investigate the business undertaken by Premier FX to determine whether any individuals may have broken the law and whether any money can be returned to customers of the firm.

Premier FX was not permitted to carry on a business of accepting deposits and, if it turns out this is what it was doing, it was doing so illegally, without the proper authorisation. Accepting deposits without authorisation is a criminal offence under the Financial Services and Markets Act 2000.

This matter resurfaced during the meeting held on Wednesday, July 3, 2019. The question was whether someone might be able to make a claim to the FSCS where an authorized institution is acting outside their scope of authorization while holding themselves out as able to undertake the transaction concerned.

The reaction by FSCS’s CEO was to say: “I don’t know the details of what you’re talking about specifically”.

FSCS’s COO added that: “We can certainly have a look at that specific scenario”.

Back in August 2018, the Scheme was pretty straightforward when stating that it will not protect money held with Premier FX. FSCS said back then will not protect money customers held with Premier FX Limited because the firm was not authorised by the FCA to hold customer money in its accounts. This means FSCS will be unable to compensate for any shortfalls in customers’ money held by Premier FX Limited.

We are curious to see whether the Scheme would change its stance on the matter.

Read this next

Metaverse Gaming NFT

Despite crypto winter, Fastex grabs $23.2 million in Fasttoken token sale

Fasttoken, part of the Fastex web3 ecosystem, has secured $23.2 million in financing through the private and public token sales of its native cryptocurrency Fasttoken (FTN).

Digital Assets

Iran to repay Russian debts in gold-backed stablecoins

A high-ranking member of the Russian parliament confirmed reports that his country was in talks with Iran to create a stablecoin for foreign trade settlements, to replace the dollar, ruble and Iranian rial.

Digital Assets

SEC denies Cathie Wood’s bitcoin ETF for second time

The approval of a regulated crypto derivative is still looking far less likely, as the US regulators have once again denied Cathie Wood’s application for a long-awaited spot bitcoin exchange-traded fund (ETF).

Executive Moves

Pavel Spirin promoted to Scope Markets CEO following Rostro acquisition

Belize-based FX and CFDs brokerage Scope Markets has promoted Pavel Spirin to take on an expanded role as the company’s chief executive officer. He replaces the outgoing CEO Jacob Plattner, who has also been a major shareholder since he resigned his position as managing director at GKFX.

Retail FX goes all-in on alternative investing, launches Rare Sneaker Portfolio

“The concept of curated Portfolios means that our members will be able to invest in categories like art, trading cards, royalties, and real estate without needing to become subject matter experts on individual assets.”

Industry News

State Street taps AWS and Microsoft for cloud and infrastructure solutions

“By standardizing and simplifying our technology operating model, we will be able to more quickly deploy client environments and launch new products and services, while continuing to enhance the resiliency of our technology environment and our business operations.”

Institutional FX

Bitpanda launches Investment-as-a-Service business for banks, fintechs, online platforms

“Financial institutions today have to ask themselves how they aim to cater the increasing demand for modern investing solutions. Building these Individually, means a high startup cost, and products that are often outdated before they are even launched.”

Institutional FX

Options expands market data feeds after partnership with Tools for Brokers

“Our integration with ACTIV Financial marked the beginning of a new era in market data availability and infrastructure. Our teams have come together to provide unparalleled, fully managed market data services alongside Options’ global connectivity and infrastructure.”

Industry News

Recruitment in financial services sector buoyant despite planned mass layoffs

“It remains to be seen what impact this will have on hiring levels within the financial services arena this quarter”, said APSCo, regarding the expected mass layoffs within the financial services sector in England & Wales.