FCA refuses extra compensation for Premier FX collapse fallout, citing firm responsibility. Regulatory improvements are outlined in response.

FCA

The UK Financial Conduct Authority (FCA) has rebuffed calls for additional compensation to customers affected by the collapse of Premier FX Limited in 2018, despite acknowledging regulatory shortcomings.

In response to the Complaints Commissioner's Final Report, the FCA expressed acceptance of many recommendations but emphasized the primary responsibility of Premier FX and its sole director for the collapse. The UK regulator invested over 12,000 hours in enforcement investigations, resulting in the full reimbursement of 167 customers with accepted claims.

While conceding that its regulation of Premier FX could have been better, the FCA maintained uncertainty about whether a different approach would have averted the losses. The regulator reiterated an apology to those impacted and outlined its commitment to learning from the incident, pledging a more assertive approach to the authorization and supervision of payment firms.

Despite recognizing the distress caused to Premier FX customers, the FCA rejected ex-gratia compensation for distress, inconvenience, and consequential loss. The response outlined steps taken to strengthen regulatory processes and improvements to its Register.

The FCA disagreed with the Commissioner's recommendation for additional compensation, emphasizing that customer losses resulted directly from Premier FX's actions.

The FCA concluded that its response, including an apology and payment for complaint handling delays, aligns with its duties and responsibilities under the Complaints Scheme. This news shows this decision comes as part of the regulator's broader efforts to enhance oversight and transparency in the financial services sector.