Clients of Supercapital Ltd, which include retail FX brokers and introducing agents, face being locked out of their accounts for months after the UK payment firm collapsed into administration following the FCA’s investigation.
It follows the collapse of broker AFX Markets Limited last month after the City watchdog intervention, amid allegations of serious concerns following the lapse of its Cypriot license.
Supercapital provides a turnkey payment solution for banks, brokers, wealth managers, and other financial intermediaries. Its offering includes a full middle and back office, regulatory oversight, financial infrastructure, technology, and support.
The FCA also stopped Supercapital, which is still authorized by the regulator, from disposing of its own or its clients' assets, and an investigation is ongoing.
FSCS lifeboat not available here
In a note sent by the FCA on September 27, the regulator said that special administrators Kevin Goldfarb and Stephen Hunt of Griffins Insolvency Practitioners LLP would carry out the proceedings and contact all affected customers “in due course” after assessing what Client Money
Client Money
Client money refers to the money or margin – which may be any currency in the form of cash, check, draft, or electronic transfer – that a firm receives or holds for a client. Money held by a firm in the form of a stakeholder, which is are not payable on demand or immediately due, also refers to client money. The definition of client money does not apply to money held by businesses that operate in its own name on behalf of a client. Although the client does have to be in agreement before this arr
Client money refers to the money or margin – which may be any currency in the form of cash, check, draft, or electronic transfer – that a firm receives or holds for a client. Money held by a firm in the form of a stakeholder, which is are not payable on demand or immediately due, also refers to client money. The definition of client money does not apply to money held by businesses that operate in its own name on behalf of a client. Although the client does have to be in agreement before this arr
Read this Term is held by the firm and its current financial position.
The FCA clarified that in the event clients are short-changed, claims will not fall on the Financial Services Compensation Scheme. “The FSCS only applies to certain types of activity. This does not include payment services,” it said.
The FSCS cover custody assets and client money shortfalls for financial services firms, including the costs associated with their distribution back to clients, for eligible clients up to £85,000.
The FCA also told clients to proceed with caution if approached by firms offering assist to return their assets with regards to Supercapital, stating for the vast majority of clients there would be no benefit in involving a third party to reclaim assets.
The regulator also warned Supercapital customers against companies or persons that approach them claiming that, for a fee, they can help them recover their losses
This type of activity is known as a ‘recovery room.’ Although some government agencies could help people who have lost money, they don’t charge a fee, guarantee money back, or give special preference to anyone who files a formal complaint.
Clients of Supercapital Ltd, which include retail FX brokers and introducing agents, face being locked out of their accounts for months after the UK payment firm collapsed into administration following the FCA’s investigation.
It follows the collapse of broker AFX Markets Limited last month after the City watchdog intervention, amid allegations of serious concerns following the lapse of its Cypriot license.
Supercapital provides a turnkey payment solution for banks, brokers, wealth managers, and other financial intermediaries. Its offering includes a full middle and back office, regulatory oversight, financial infrastructure, technology, and support.
The FCA also stopped Supercapital, which is still authorized by the regulator, from disposing of its own or its clients' assets, and an investigation is ongoing.
FSCS lifeboat not available here
In a note sent by the FCA on September 27, the regulator said that special administrators Kevin Goldfarb and Stephen Hunt of Griffins Insolvency Practitioners LLP would carry out the proceedings and contact all affected customers “in due course” after assessing what Client Money
Client Money
Client money refers to the money or margin – which may be any currency in the form of cash, check, draft, or electronic transfer – that a firm receives or holds for a client. Money held by a firm in the form of a stakeholder, which is are not payable on demand or immediately due, also refers to client money. The definition of client money does not apply to money held by businesses that operate in its own name on behalf of a client. Although the client does have to be in agreement before this arr
Client money refers to the money or margin – which may be any currency in the form of cash, check, draft, or electronic transfer – that a firm receives or holds for a client. Money held by a firm in the form of a stakeholder, which is are not payable on demand or immediately due, also refers to client money. The definition of client money does not apply to money held by businesses that operate in its own name on behalf of a client. Although the client does have to be in agreement before this arr
Read this Term is held by the firm and its current financial position.
The FCA clarified that in the event clients are short-changed, claims will not fall on the Financial Services Compensation Scheme. “The FSCS only applies to certain types of activity. This does not include payment services,” it said.
The FSCS cover custody assets and client money shortfalls for financial services firms, including the costs associated with their distribution back to clients, for eligible clients up to £85,000.
The FCA also told clients to proceed with caution if approached by firms offering assist to return their assets with regards to Supercapital, stating for the vast majority of clients there would be no benefit in involving a third party to reclaim assets.
The regulator also warned Supercapital customers against companies or persons that approach them claiming that, for a fee, they can help them recover their losses
This type of activity is known as a ‘recovery room.’ Although some government agencies could help people who have lost money, they don’t charge a fee, guarantee money back, or give special preference to anyone who files a formal complaint.
