UK FCA censures Premier FX for misleading customers, misusing accounts

The U.K. Financial Conduct Authority publicly censured payments firm Premier FX Ltd. for misleading customers about its services and misusing its payment accounts.

The firm failed to comply with requirements on safeguarding of funds and payment accounts use between 2013 and 2018. It falsely told customers that it was able to hold their funds indefinitely and these would be held in secure, segregated accounts while protected by the Financial Services Compensation Scheme, the regulator said.

Premier FX's sole shareholder and director, Peter Rexstrew, controlled the firm's operations, restricted access to its bank accounts and dealt with almost all of the transactions out of, and between, the accounts. The scheme was unraveled after Rexstrew's death on June 16, 2018.

The FCA gave a public censure instead of a substantial financial penalty because Premier FX is in liquidation.

The regulator said it continues to investigate whether any other parties breached its rules and it may take action, including recovering redress, for any breaches they may have caused to customers.