Premier FX told customers funds were FSCS-protected — none of it was true

Premier FX was authorised by the FCA only for money remittance — transferring funds onward, not holding them. Yet between 2013 and 2018 it told customers their money could be held indefinitely in 'secure, segregated client accounts' protected by the Financial Services Compensation Scheme. The FCA's February 2021 public censure states plainly that 'none of these claims were true.'

On that basis, many customers — some paying hundreds of thousands of pounds, euros or US dollars — left funds with Premier FX to hold without an onward transfer instruction, believing the money was repayable on demand. Holding customer funds indefinitely without a payment order is not permitted for a remittance firm and could amount to accepting deposits, which is separately regulated under the Financial Services and Markets Act.

The FCA said it would have imposed 'a substantial financial penalty' but settled on a public censure because Premier FX is in liquidation with significant liabilities to creditors, most of them consumers. Sole director and shareholder Peter Rexstrew controlled all aspects of operations, restricted access to the bank accounts and personally handled nearly all transactions; the FCA found no evidence any employees were involved.

Firm in liquidation with significant liabilities, most creditors consumers; some customers held hundreds of thousands; FCA censure instead of a fine

The firm misrepresented what its licence allowed, turning a remittance service into unauthorised deposit-taking by another name.

False claims of segregated accounts and FSCS cover removed the scrutiny that would have questioned indefinite holding of funds.

Single-person control of accounts and transactions meant no internal check ever challenged the practice across five years.

An authorised firm's badge is not deposit protection: remittance licences do not allow indefinite custody, and 'segregated and FSCS-protected' claims have to be true.

Premier FX is in liquidation, with administrators assessing claims from customers owed money; because of the liabilities to largely consumer creditors, the FCA imposed a public censure rather than the substantial fine it said the failings warranted.