Think Britain’s FSCS is a cast iron guarantee? Think again!

/Think Britain’s FSCS is a cast iron guarantee? Think again!

A recent issue with the UK registered broker highlights the way client money protections work in the United Kingdom when it comes to Forex traders. As a result of investigations, the FSCS will be unable to compensate for any shortfalls in customers’ money held by Premier FX Limited.

There has been a piece of very rough news for customers of a UK registered broker, Premier FX Limited, as the Financial Services Compensation Scheme (FSCS) has just announced it will not protect money held with the company.

Premier FX Limited was only ever permitted to carry out certain payment services known as ‘money remittance’. However, Premier FX was found to be acting outside of the boundary of these permissions by also holding customer money in their accounts.

FSCS 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.

Premier FX Limited offered money transfer services to customers living and working abroad. Most of the firm’s business targeted expats living in Portugal and Spain.

On August 13, 2018 Premier FX Limited went into administration. The Financial Conduct Authority (FCA) appointed PKF Geoffrey Martin & Co as the administrator.

The FSCS advises Premier FX customer who have any queries to contact the Administrators PKF Geoffrey Martin & Co on 020 7495 1100, or email premierfx@geoffreymartin.co.uk.

The website of Premier currently displays a message from Dina Devalia and Peter Hart of PFK Geoffrey Martin & Co., who have been appointed joint administrators of Premier.

Customers who have previously sent funds into Premier’s bank account(s) are advised to provide the information listed below, by either email or post. This will enable the Joint Administrators to address any queries and/or concerns the customers may have:

  • A copy of one’s agreement with the Company;
  • Confirmation as to the total funds sent into the Company’s bank account(s);
  • A detailed breakdown of one’s payments to the Company’s accounts, including details of the amounts and dates the payments were made, which currency payment was made in and any written instructions to the Company in respect of the same. Where possible copy bank statements evidencing your payment(s) should also be provided;
  • Details of the Company account(s) into which the payments were made.

The Joint Administrators says they are currently carrying out their statutory investigations into the business and the above information will assist them with any queries Premier’s customers may have.

This content was originally published by FinanceFeeds.

2018-09-17T13:41:51+00:00September 11th, 2018|