FCA Confirms Special Administrators for Euro Exchange Securities UK

The Financial Conduct Authority said on June 11 that the High Court confirmed the appointment of special administrators for Euro Exchange Securities UK Limited, following earlier FCA action that required the firm to cease regulated electronic money and payment services.

The FCA said Euro Exchange Securities did not seek to overturn the initial court decision and agreed it was not in the company’s interests to return to normal trading. Duncan Perring and James Bennett of Teneo Financial Advisory Limited were appointed joint special administrators under the Payment and Electronic Money Institution Insolvency Regulations 2021.

According to the FCA, the action followed serious concerns about the way the firm operated, including significant financial crime risk, weaknesses in its financial crime framework and safeguarding arrangements, and issues around ownership and governance. The regulator said the special administrators are responsible for customer claims and returning funds where possible.

The FCA also warned customers to be alert to recovery scams and said the Financial Services Compensation Scheme does not cover electronic money or payment services activity.

Why it matters

Payment and e-money firms are part of the trading ecosystem because they often sit around account funding, withdrawals and cross-border transfers. Weak safeguarding or financial crime controls can directly affect client access to funds.

What to watch next

Watch updates from the special administrators on customer claims, fund recovery and whether the FCA uses similar court-led tools against other payment firms with safeguarding or financial crime weaknesses.