UK Payment Provider Currency Matters Collapses Following FCA Clampdown

Currency Matters Limited, a UK-based payment services provider, has entered special administration following a decision by its directors that the company was insolvent.

The firm, which was authorized by the Financial Conduct Authority (FCA) to offer payment services to both corporate and retail clients, had already been under pressure following regulatory actions in September. On the 1st of that month, the FCA placed restrictions on Currency Matters, limiting its ability to onboard new clients or accept additional funds from existing customers. These measures were a precursor to the company’s insolvency filing.

Frank Ofonagoro and Allister Manson, insolvency practitioners from Opus Business Advisory Group, were appointed as . They are now responsible for managing customer claims and overviewing the process of returning funds to clients where possible. The FCA, which continues to , stated that it will work closely with the administrators to secure the best possible outcome for affected customers.

Currency Matters’ financial hardies appear to have culminated in the decision to apply for special administration. According to the company’s directors, the firm had become insolvent, a conclusion that led them to administration order. The of the administrators and urged any customers with questions to contact the Opus team directly via email.

The restrictions imposed in September had already placed significant limitations on Currency Matters’ operations. These measures are part of a broader strategy by the FCA to ensure that payment institutions meet regulatory standards and protect consumers, particularly in cases where firms face financial challenges.

The situation highlights the ongoing scrutiny of the UK’s payment services sector, especially as regulators ramp up their focus on secureguarding customer funds. The Payment and Electronic Money Institution Insolvency Regulations 2021 (PESAR) were introduced to manage the winding-down process for firms in the payment services space, ensuring that customer claims are handled appropriately during insolvency. PESAR cases have been increasing in recent years, with several firms under investigation or entering administration, including notable cases such as Rational FX and Silverbird Global.

Although Currency Matters was not subject to the Financial Services Compensation Scheme (FSCS), which covers most bank depositors, the company was required to secureguard customer funds. The special administrators will now manage these secureguarded funds and determine the process for their return, which is expected to take some time as they assess the full scope of the firm’s financial obligations.

The FCA, while not directly managing the insolvency, has committed to supporting the process and ensuring that customers are treated fairly. The regulator has said it will engage with the special administrators to ensure the best outcome for the firm’s clients. However, the situation underscores the risks that consumers face when dealing with non-bank financial firms, particularly those and foreign platform.

Currency Matters’ clients, many of whom are corporate customers, will now have to wait for updates from the special administrators, who will be tasked with distributing funds and managing any potential shortfalls. For now, customers are advised to reach out to the administrators directly through the official contact channels for any claims-related inquiries.