The UK Financial Conduct Authority (FCA) today confirmed that Rational Foreign Exchange Limited (RFX) entered special administration.

Ed Boyle and Kristina Kicks of Interpath Ltd have been appointed joint special administrators (JSAs).

RFX provides foreign exchange and payment services to corporate and retail clients. It is authorised by the FCA to provide payment services under the Payment Services Regulations 2017 (the PSRs).

The directors of the firm concluded that the firm was insolvent and applied to court for a special administration order.

The JSAs are responsible for managing customer claims against the firm and distributing funds back to customers where possible.

Customer should contact the JSAs with any concerns. You can contact them directly on: rationalfx@interpathadvisory.com.

A PSD Agent of the firm, Xendpay Limited – which is under common ownership – also entered administration at the same time. The affairs of that firm are being managed by the same insolvency practitioners, Ed Boyle and Kristina Kicks of Interpath Ltd.

On 29 November 2023, the FCA imposed an own initiative requirement (OIREQ) on Rational Foreign Exchange Limited which restricted the activities it can undertake.

Customers should contact the JSAs if they are concerned, have any questions, or for any updates. The JSAs will gather as much information as possible from creditors and customers of RFX about payments made to, or owed by, RFX.

Customers can also contact the FCA Consumer Helpline for further information.

The funds of RFX’s customers are not protected by the Financial Services Compensation Scheme (FSCS).

The FSCS only applies to certain types of activity. This does not include payment services. Under the PSRs, by which regulated payments firms must comply, there are requirements on how customers’ money should be protected, and these requirements are known as ‘safeguarding’.

RFX was required to hold money separately for its customers. Safeguarding is a key consumer protection measure within the PSRs. The purpose of safeguarding is to protect customer funds if a firm fails. The JSAs will carry out an assessment of all funds held by the firm to establish which are safeguarded for customers and which belong to the firm.

Following the special administration order, the JSAs are responsible for RFX, but the firm continues to be FCA-authorised. The JSAs are officers of the Court and need to comply with all insolvency law. The individuals appointed are authorised to act as licensed insolvency practitioners. The JSAs have statutory objectives which include engaging with authorities, including the FCA.

All customers should remain alert to the possibility of fraud. If you are cold called by someone claiming to be from RFX, the JSA or the FCA, please end the call and contact them directly using the contact details provided by the FCA.