Whilst FSCS protection does not extend to electronic money and payment services, protection may exist for eligible customers in regards to Argentex’s wealth management services.
Argentex LLP, a forex firm which also offered wealth management services, has entered special administration this week.
Argentex provided electronic money and payment services (under FRN 900671), as well as wealth management services (under FRN 781077). It was authorised by the FCA from 2017.
The firm ceased trading last week, with interim CEO Tim Rudman resigning from the firm at the start of this week.
The firm stopped trading on 17 July citing a funding shortfall due to market turbulence and then entered special administration under the Payment and Electronic Money Institution Insolvency Regulations 2021.
Daniel Conway, Anthony Wright and David Hudson of FRP Advisory Trading have been appointed as joint special administrators.
The Financial Services Compensation Scheme (FSCS) is currently investigating whether any wealth management claims are possible, and how best to deal with them.
While FSCS protection does not extend to electronic money and payment services, protection may exist for eligible customers in regards to Argentex’s wealth management services. The compensation body is working with the administrators to determine whether the Argentex customers who have client money with Argentex in connection with its wealth management services are eligible for this protection.
Funds received from customers in relation to electronic money and payment services, as well as client money in relation to wealth management services were required to be held separately from the firm’s own funds (and each other) in line with the electronic money regulations (for electronic money and payment services) and the FCA’s rules (for wealth management services).
The FCA has advised customers of Argentex to contact the joint administrators with any concerns while the FSCS and FCA determine which wealth management customers are eligible for FSCS protection.
Argentex had previously experienced issues after suspending trading in April, before securing funding. Finance chief Guy Rudolph left the firm in May, along with several board members, following the April issues.
Fellow forex firm IFX Payments had previously expressed interest in purchasing Argentex, in a deal valued at around £3m, before the firm ceased trading. IFX told Reuters on Monday that under the terms of the agreed deal, it reserved the right to withdraw its offer for Argentex if any insolvency process was initiated.
