The Financial Conduct Authority (FCA) has issued a comprehensive response to the Financial Regulators Complaints Commissioner's Final Report regarding complaints related to the collapse of Premier FX Limited in 2018.

Areas of Improvement: FCA Acknowledges Regulatory Shortcomings

The collapse of Premier FX raised significant concerns for individuals who had entrusted the firm with their funds. The FCA has carefully considered the Commissioner's recommendations, acknowledging many of them. However, the FCA has decided against providing additional compensation to Premier FX's customers beyond payments already made for delays in handling complaints.

Attributing the collapse to decisions made by the firm and its sole director, the FCA highlighted their efforts, dedicating over 12,000 hours to enforcement investigations. This resulted in the reimbursement of all accepted claims from 167 customers, with Barclays, the firm's banker, voluntarily contributing £10,076,943.75.

While acknowledging areas for improvement in their regulation of Premier FX, the FCA emphasized that an alternative approach might not have prevented losses or expedited fund recovery. The FCA reiterated apologies to those affected and expressed a commitment to learning from the incident, including a more assertive approach to the authorization and supervision of payment firms.

The FCA will communicate directly with complainants, providing comprehensive explanations of the steps taken to bolster regulatory processes and enhancements made to their Register.

Navigating Recommendations: Responses to Commissioner's Findings

The FCA has responded to the Financial Regulators Complaints Commissioner's Final Report, addressing issues arising from the collapse of Premier FX Limited.

In response to the first recommendation regarding hyperlinking the Handbook Glossary terms, the FCA has declined, expressing concerns about overwhelming consumers with technical language. The regulatory body underscores its commitment to improving the Register's clarity and user-friendliness, with efforts to enhance visibility, simplify language, and provide a better overall experience.

In response to the recommendation, the FCA has committed to writing to complainants by the end of January 2024 and has expressed its dedication to enhancing transparency by outlining the steps taken to fortify its authorization and supervision processes.

On the topic of ex-gratia compensation, the FCA has rejected the recommendation, citing costs, legislative complexities, and the unauthorized activities of Premier FX. The regulator emphasizes its dedication to fairness, acknowledging an apology and payment for complaint handling delays as the most appropriate remedy.

In addressing changes to the Register, the FCA highlights recent improvements, including clearer language, increased visibility, and user-friendly features. The regulatory organization reiterates its commitment to ongoing enhancements, considering a new Register architecture for better consumer testing. It also acknowledges the recommendation on consumer verification, stating that changes have already been made to direct consumers to the FSCS and Financial Ombudsman for information on available protections.

Finally, the FCA emphasizes the need to consider costs, statutory immunity, and customer due diligence in rejecting the recommendation for ex-gratia compensation. The rejection is grounded in legislative frameworks, the unauthorized activities of Premier FX, and a commitment to a balanced approach to informing consumers.