FCA secures special administrators for Euro Exchange Securities UK after trading halt

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FCA secures special administrators

Highlights

The High Court appointed Duncan Perring and James Bennett of Teneo as joint special administrators for Euro Exchange Securities UK Limited under insolvency regulations following last week's trading halt.
Euro Exchange Securities UK Limited agrees it will not return to trading and will cooperate with administrators to expedite client money returns after funds and material were secured.
The FCA initiated this unprecedented action due to serious financial crime concerns after extended engagement with EES, underscoring heightened regulatory scrutiny on UK payment firms.

Court-backed administration and asset control

As reported by the Financial Conduct Authority, the High Court confirms the appointment of Duncan Perring and James Bennett of Teneo Financial Advisory Limited as joint special administrators for Euro Exchange Securities UK Limited under the Payment and Electronic Money Institution Insolvency Regulations 2021.

EES does not seek to overturn the court's initial decision, which sees the firm cease trading with immediate effect last week. The company agrees it is not in its interests to return to normal trading and says it will work with the appointed administrators so client money is returned as quickly as possible.

Since their provisional appointment last week, the joint special administrators have taken control of the firm, secured a significant amount of material and frozen funds.

Financial crime focus for UK payments sector

This case marks the first use of this kind of action for the FCA, which says it continues to use its powers to protect consumers and the integrity of the markets. The regulator says it acts after lengthy engagement with EES and because of serious concern over the way the firm operates, which indicates significant financial crime risk.

The FCA says it works with partners across government, including the Security Industry Authority, as part of joint strategies to disrupt financial crime. Matthew Long, director of payments and digital assets at the FCA, says the risk of payment firms being used by criminals to launder cash that funds other offences is significant and that firms must meet expected standards.

Our earlier article covered the London court case involving barrister Robert Venables KC and allegations that he used trust and partnership structures to route payments and withhold nearly £2 million in tax owed to HMRC. We outlined prosecutors’ claims about payments for relatives and workers being channelled through trusts, alongside Venables’ defence that the arrangements were intended for tax efficiency and reduced bureaucracy.

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