The Financial Services Compensation Scheme (FSCS) has confirmed it will not protect money customers held with Surrey-based money transfer firm Premier FX, which went into administration on 13 August.
Set up in 2006, Premier FX specialised in helping expats buy property and transfer money abroad.
Most of the firm’s business targeted Brits living in Portugal and Spain, who have been left in limbo after the FSCS announced that their money is not protected by the UK’s statutory compensation scheme.
Regulator steps in
On 13 August, following a High Court application by the Financial Conduct Authority, Premier FX went into administration.
This followed it suspending its operations on 27 July, citing the death of founder Peter Rexstrew the previous month. It then closed its phone lines and offices in London, Portugal and Mallorca, reports newspaper The Times.
The regulator stated: “Premier is authorised by the FCA under the Payment Services Regulation 2017 to perform money remittance services.”
However, it was found to be acting outside the boundary of these permissions by also holding customer money in its accounts.
For this reason, the FSCS confirmed on Wednesday that it “will be unable to compensate for any shortfalls in customers’ money held by Premier FX”.
The FCA said it is working closely with administrator PKF Geoffrey Martin & Co to ensure that customers are treated fairly.
The administrators are currently carrying out their statutory investigations into Premier FX and have asked that customers send details of their agreements, confirmation of the total funds sent, a detailed breakdown of payments and the accounts into which the money was paid.
Expats in limbo
A Facebook group has been created for people who used Premier FX and cannot access their money.
One individual wrote about the company holding “every bit of money my wife and myself have in this world”, while another person has been unable to access a 10% deposit for a villa, putting their home purchase in jeopardy.
The Times reported that one individual lost access to their accruing pension money that had been saved to pay for an operation.
