Premier FX Limited – In Administration (“the Company”) - Peter Hart and Dina Devalia (the Joint Administrators) have written to the collapsed company's creditors and issued a 'CUSTOMER FAQs' sheet, as below:
Bank accounts
Why were the accounts held at Barclays not in segregated client accounts, despite being informed this was the case?
The Company did not have authority to hold client funds. This has been confirmed by the Financial Conduct Authority (“FCA”). In any event, the responsibility of ensuring that the funds were held in segregated client accounts belonged solely with the directors of the Company. It has been confirmed by Barclays that they were not instructed by the directors at any time to hold funds in such accounts. The directors of the Company were as follows:
- Peter Rexstrew (deceased) – 04/04/2006 – 16/06/2018 - Charlie Rexstrew – 18/06/2018 - current - Katy Grogan (formerly Rexstrew) 18/06/2018 - current
We continue to make enquiries into this matter.
What is the quantum of the shortfall referred to in the most recent update?
This is affected by a number of factors:
- We are in the process of collating client claims which will be reconciled against the Company records in our possession. - At this time, it can be confirmed that we have received potential claims in excess of those listed in the Company records. - We are able to confirm that there will be insufficient funds to repay clients in full, in any currency held. - The Joint Administrators will seek to recover funds for the benefit of the creditors, including customers. - The extent of the shortfall will depend upon the recoveries made by the Joint Administrators. - At this stage the extent of such recoveries is uncertain.
For these reasons, we are currently unable to quantify the shortfall.
Why does it take so long to trace the movement of funds?
We are in the process of receiving all documentation required to trace the movement of funds held in the accounts. However, this will be a complex process.
The Company held 66 individual bank accounts with Barclays in various currency denominations. By way of example, on average there can be between 50-100 transactions on each account per day.
Therefore, I am sure you can appreciate the tracing of funds prior to the Administration will be a time-consuming task and I am unable to give a substantive update at this time, or provide an estimated timescale.
When were the bank accounts frozen?
We have been advised that Barclays formally froze the accounts on 8 August 2018 consequent to an Injunction Order made shortly before that date. However, from our analysis of the bank statements made available to us to date we can confirm that it would appear that no payments were made out of any of the accounts after 27 July 2018. Should you have made payment to the accounts after this date, please email premierfx@geoffreymartin.co.uk directly and we will endeavour to respond to you with the options available.
The Company’s Trading
When did the business cease trading?
We are conducting investigations into when the Company ceased trading. The directors have advised this was on 27 July 2018, however, this has not yet been independently verified.
What is the difference between a company being registered by the FCA and protected by the FSCS? Where does this company fall?
There are a range of activities which require FCA regulation; any organisation wishing to carry out one (or many) of these activities must apply to the FCA to do so for each activity. The range of regulated activities a firm is allowed to conduct is referred to as its “Permissions”. Conducting any regulated activity without the appropriate Permission is an offence.
This firm had permission to carry out money remittance only – sending money from one person to another – as was shown on the FCA register.
A firm’s Permissions define how it interacts with the FCA, including the kind of information it must share with the FCA in order to allow appropriate oversight of its activities. For more information on how Payment Service Providers (such as money remitters) are Supervised by the FCA, please see here.
Permissions also define what other controls and fees apply, including FSCS coverage. There are no Payment activities covered by FSCS. The types of activities that are covered by FSCS can be found here. This is based on the activity that firms have Permission to carry out; partly because this ensures the appropriate level of oversight, and also as this means that the business will pay the appropriate levy to support the FSCS scheme to provide coverage for its customers.
Premier FX should not have been suggesting that there was FSCS coverage in respect of its activities.
Current and Former Directors and Staff
Will you investigate the actions of the directors?
As part of the duties of the Administrators, we will be undertaking a review of the conduct of all individuals who acted as directors within the three years prior to the Administration. For the avoidance of doubt, this will include:
- Peter Rexstrew (deceased) – 04/04/2006 – 16/06/2018 - Charlie Rexstrew – 18/06/2018 - current - Katy Grogan (formerly Rexstrew) 18/06/2018 - current
We are currently liaising with the two current directors.
Will you be contacting all former employees of the Company?
As part of our investigations, we will contact all former employees within the last three years regarding to their dealings with the Company prior to the Administration.
Investigations
Will you be in contact with the Company’s former advisors?
As part of our investigations, we will be liaising with all professional advisors who were instructed by the Company prior to the Administration.
We are aware that specific professional advice was obtained by the Company in the period prior to our instruction on 1 August 2018. We will be contacting those advisors to establish what advice was given. I can confirm our involvement as of 1 August 2018 was solely in relation to placing the Company into Administration.
Will you be undertaking a criminal investigation?
Whilst it is possible that there may be matters which require criminal investigation, such investigations will need to be undertaken by the proper authorities. We will assist in any way possible in this regard.
Will the Administrators do everything in their power to trace the monies lost?
An Administrators duty is to investigate the Company’s affairs prior to the Administration and to make any and all recoveries for the benefit of the creditors as a whole.
We are actively tracing the movement of the funds and exercising the full powers the Administrators have in order to obtain a clearer picture of the position of the Company.
Do creditors need to instruct a solicitor?
As Administrators, we will be dealing with all classes of creditor claims. From our perspective, and with regards to the Administration, there is no need for creditors to have legal representation in their dealings with us.
However, creditors are entitled to seek independent legal advice depending upon their own circumstances.
What do you mean by “Third Parties”?
We are reviewing transactions made with any party outside of the Company and its bankers.
Is it the role of the Joint Administrators to find out why the Company went insolvent?
The Joint Administrators will review the historic trading operations of the Company, its financial position and the conduct of its directors, (including all directors who have held office over the three years preceding administration).
Can I go to the Police?
The Joint Administrators understand that certain customers have contacted the Police – whilst we understand that customers are concerned about the situation, the Joint Administrators should be the initial point of contact. The Joint Administrators will notify the relevant police/government authorities as appropriate.
Creditors
What is the difference between a creditor and a customer?
We are specifically describing those parties who paid funds into the Company’s bank account as “customers”, however, any party who is owed money will also be categorised as a creditor.
What rights do creditors have?
“A Creditors’ Guide to Administrators’ Remuneration” is available to download at https://www.geoffreymartin.co.uk/stakeholder-resources/fee-guides. Should you require a paper copy, please send your request in writing to the Joint Administrators. A copy will be provided at no cost.
As required by the Insolvency Act 1986, the Joint Administrators will prepare proposals which will be uploaded to the website within eight weeks of the commencement of the Administration. If appropriate, a meeting of creditors will be convened. At that stage, creditors may choose to form a Creditors’ Committee. For information on the rights, duties and the functions of Committees, go tohttps://www.r3.org.uk/liquidation-creditorscommittees-and-commissioners-a-guide-for-creditors.
Should you wish to know more about the insolvency process in general, I recommend that you visit www.creditorinsolvencyguide.co.uk.
What are the prospects of recovering my monies?
As detailed above, the Joint Administrators are not in a position to provide any comment about a return of monies to the customers at this stage. The Joint Administrators must first realise all assets of the Company and this process is likely to take a number of months.
Should any monies become available in the form of a dividend, it is likely to be in excess of twelve months from the date of the Joint Administrators appointment before the timing and quantum if any is known.
Further Communication
Who and how do we contact?
The Joint Administrators acknowledge that there will be a number of queries and questions that the customers wish to raise. However, based on the initial review of the Company’s books and records there are in excess of 150 customers.
When will I receive correspondence?
The Joint Administrators are obliged to provide a report to creditors within 8 weeks of their appointment. This report will provide details of the Company’ history and the Joint Administrators proposals. It is likely that a creditors meeting will also be convened. In the interim the Joint Administrators will provide updates via the websites detailed above as and when information is available.
We are issuing these FAQ’s to answer common queries raised my multiple customers. We are endeavouring to provide as much information as we can going forward. It is requested that all future correspondence is made via email so that it can be dealt with efficiently and in an orderly manner.
We are, of course, acting in the best interest of all creditors, but request at this time that we are given time to continue with our investigations and trace the movement of funds so that a beneficial update to all can be given.
For and on behalf of
Peter Hart and Dina Devalia The Joint Administrators
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See also: 'New bombshell rallies Premier FX victims'New bombshell rallies Premier FX victims' (The Portugal Resident, 30 August 2018)
For a Sky News report, click HERE
