Premier FX: Insolvency

Treasury written question – answered on 13th July 2021.

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Photo of Thangam Debbonaire Thangam Debbonaire Shadow Leader of the House of Commons

To ask the Chancellor of the Exchequer, what steps he is taking to provide support for people who have lost money in the Premier FX collapse.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

Premier FX, an authorised payment institution, was placed into administration in August 2018 on the application of the Financial Conduct Authority (FCA), and subsequently entered insolvency.

An FCA investigation, which reported in February 2021, found that Premier FX had misled its customers by informing them that it was able to hold their funds indefinitely, that their funds would be held in secure, segregated client accounts and that their funds would be protected by the Financial Services Compensation Scheme. As a result, the FCA has publicly censured Premier FX for breaches of the Payment Services Regulations. The FCA continues to investigate whether there were breaches of its rules by other parties and, if so, will take action, including steps to recover redress for any breaches that may have caused of contributed to losses from customers.

The Government has great sympathy for the creditors of Premier FX and encourages them to continue to engage with the insolvency process.

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