The UK Financial Conduct Authority (FCA) has earlier today confirmed that payment services provider Supercapital Ltd has entered administration.
October 1, 2019, | AtoZ Markets - 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 services provider entered into administration following the FCA’s investigation.
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.
Customers' funds not protected by Compensation Scheme.
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 will carry out the proceedings and contact all affected customers “in due course” after assessing what client money 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.
FCA warns clients against fraud
The FCA has advised all customers to be on guard against fraud. If you are cold-called by someone claiming to be from Supercapital, Griffins or the FCA, please end the call and contact them directly.
Those approached by a company offering to help them recover their money should proceed with caution. For most of the firm’s clients, there will be no benefit in involving a third party in making a claim.
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