The Financial Conduct Authority (FCA) has moved to shut down Euro Exchange Securities UK Ltd after securing an order from London’s High Court on Thursday to appoint administrators for the payments firm.
Euro Exchange Securities UK Ltd, the London arm of an electronic money and payments business that also operates in the United States and Spain, is now under the control of joint special administrators. The FCA said the company must return client money as quickly as possible.
Joint special administrators Duncan Perring and James Bennett of Teneo Financial Advisory, who had been temporarily appointed last week, now hold confirmed appointments. The administrators have taken actions to secure a large amount of material and have frozen funds as part of initial stabilization steps.
The regulator had directed Euro Exchange Securities to stop trading on June 4. The FCA said it took that step after extended discussions with the firm concerning serious concerns about financial crime risks in its operations, with money laundering cited specifically among the issues raised.
The High Court’s approval formalizes the FCA’s request to place the firm under administration and enables the administrators to manage assets and liabilities while prioritizing the return of client funds. The administrators’ actions to freeze funds and secure material indicate immediate control measures are in place as the situation is assessed.
While the firm has operations beyond the U.K., the FCA’s statement emphasized the priority of returning client money held by the London division. The regulator’s earlier stop-trading instruction and subsequent court-backed administration stem from unresolved concerns about the firm’s compliance with rules intended to guard against financial crime.
Summary of events:
- High Court approved the FCA’s request to appoint administrators on Thursday.
- Euro Exchange Securities UK Ltd must return client money as quickly as possible, the FCA said.
- Joint special administrators Duncan Perring and James Bennett of Teneo Financial Advisory, initially appointed last week, have been confirmed and have frozen funds and secured material.
- The FCA ordered the firm to stop trading on June 4 after extended discussions about serious financial crime risks, including money laundering.