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

Digital Assets

BlockTower teams up with Centrifuge to bring real world assets to DeFi

The protocol empowers businesses to tokenize non-crypto assets such as mortgages, invoices and consumer credit, to create asset-backed pools that create an investment opportunity, and as a result, democratizing access to capital.

Digital Assets

Solana-powered game DeFi Land launches Play-and-Earn features

The Play-and-Earn mechanics announcement comes on the heels of a collab between DeFi Land and STEPN. DeFi Land will soon announce chain integrations, an alpha mobile version, and a multichain feature. 

Retail FX

Spotware rolls out Manager’s API for cTrader brokers

Spotware Systems, a technology provider for the electronic trading industry, has released its new Manager’s API for Brokers, providing powerful tools for server-server integration.

Metaverse Gaming NFT

Dubai Museum taps Binance to jump onto NFT bandwagon

Dubai’s Museum of the Future, the $136 million UAE government-sponsored museum that opened a few weeks ago, is joining forces with Binance NFT to roll out a range of digital products on blockchain.

Digital Assets

Ripple and Lithuanian FINCI partner for XRP-based payments

Ripple is looking to expand its presence in Europe, forming a new partnership with Lithuanian electronic money institution FINCI.

Digital Assets

Crypto.com enables Shopify merchants to accept crypto payments

Crypto.com has integrated with Canadian e-commerce giant Shopify so global merchants can accept crypto payments and save on processing fees through cash-final settlements.

Institutional FX

FX volume drops 13pct at CLS Group in April 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in April.

Crypto Insider, Opinion

Regulation: The Gold-Standard for Crypto-Assets

When the US supervisory authority SEC allowed an investment product referencing Bitcoin futures to be traded for the first time last October, this was widely perceived as a signal that cryptocurrencies had finally become established as an asset class.

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

<