High Court Confirms Special Administrators for Euro Exchange Securities UK | LeapRate | Online Trading Industry News, Broker Intelligence & Fintech Analysis
The High Court has confirmed the appointment of special administrators for Euro Exchange Securities UK Limited (EES), marking the first case of its kind for the Financial Conduct Authority (FCA).
EES chose not to contest the court’s initial decision, which had brought the firm’s trading to an immediate halt last week. The company acknowledged it was not in its interests to seek a return to normal operations and said it would cooperate with administrators to ensure client money is returned as quickly as possible.
Duncan Perring and James Bennett of Teneo Financial Advisory Limited have been named joint special administrators under the Payment and Electronic Money Institution Insolvency Regulations 2021. Since their provisional appointment last week, the pair have taken control of the firm, secured a significant volume of material and frozen funds.
The FCA said it acted following lengthy engagement with EES and due to serious concerns about the firm’s business practices, which the regulator said indicated significant financial crime risk. Specific issues identified included systemic weaknesses in EES’s financial crime framework and safeguarding arrangements, as well as concerns over the firm’s ownership and governance structure. The FCA worked alongside government partners, including the Security Industry Authority, as part of coordinated efforts to disrupt financial crime.
Matthew Long, the FCA’s Director of Payments and Digital Assets, said: “The risk of payment firms being used by criminals to launder cash to fund other offences is significant, which is why they must meet expected standards. Fighting financial crime is at the heart of our strategy.”
