The UK Financial Services Compensation Scheme (FSCS) has provided an update to clients of Argentex LLP.

On 17 July 2025, Argentex stopped trading. On 21 July 2025, Argentex entered special administration under the Payment and Electronic Money Institution Insolvency Regulations 2021. Daniel Conway, Anthony Wright and David Hudson of FRP Advisory Trading Limited were appointed as joint special administrators (JSAs).

Argentex provided electronic money and payment services, as well as wealth management services.

Since FSCS’s last update, the JSAs have been working to reconcile the Argentex financial records. This has involved securing and quantifying customer funds and establishing what claims customers have against those funds. FSCS understands that the reconciliation exercise for CASS client money positions has been particularly complex. The Scheme have been working with the JSAs to understand the position.

Argentex has two types of customers. A large portion of Argentex customers are electronic money and payment services customers. FSCS does not cover electronic money and payment services, and these customers will therefore not be eligible for FSCS compensation.

There are also CASS client money customers, whose funds are held under rules set out in the FCA’s Client Assets Sourcebook. CASS client money was usually held by Argentex as part of its investment services.

All Argentex customers will have a deduction from the distribution they receive from Argentex. This is because of the costs of distributing the safeguarded funds and client money. This deduction is pro-rated according to the value of customer claims.

FSCS confirms that it will be able to compensate Argentex’s CASS customers for the deduction from their CASS client money entitlement. FSCS understands that this protection will apply to a small group of customers. The JSAs have already notified these customers that they have a CASS client money entitlement.

Argentex’s CASS client money customers will need to meet the following conditions to be eligible for FSCS compensation:

• You must have a CASS client money entitlement that has been accepted by the JSAs. This means that you must have submitted a claim for client money to the JSAs.
• You must be an FSCS-eligible customer. Individuals and small companies are eligible for FSCS compensation. There are also other categories of eligible customers. In certain circumstances, FSCS can look-through particular entities like money purchase pension arrangements, bare trusts, nominees, agency arrangements and collective investment schemes to compensate underlying eligible customers. There are categories that are specifically excluded from FSCS compensation such as large companies, large partnerships and overseas financial services institutions.

The number of customers receiving the full value of their client money claim after FSCS compensation is likely to be extremely limited. Customers should be aware that FSCS compensation is limited to £85,000 per person.

FSCS will not open to claims from Argentex customers yet.

The JSAs need to obtain a court order before they can make distribution payments to CASS client money customers.

FSCS will open to claims once the distribution has been made and CASS client money customers have had the relevant costs deducted. CASS client money customers will then be able to bring a claim relating to their cost deduction using FSCS’s online claims service. Customers will be able to submit additional documentation to show that they are eligible for FSCS compensation.