Rational Foreign Exchange Limited enters special administration

On 29 November 2023, Rational Foreign Exchange Limited (RFX) entered special administration under the Payment and Electronic Money Institution Insolvency Regulations 2021. 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.

Customers should contact the JSAs with any concerns. You can contact them directly on: [email protected].

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. Details of this are on the FS Register.

What is special administration? 

The Payment and Electronic Money Institution Insolvency Regulations 2021 introduced a new special administration regime for payment and e-money institutions. A special administration is similar to an ordinary administration however, the special administrators have an additional objective of returning customer funds as soon as reasonably practicable.

What should I do if I have money with RFX? 

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 of RFX who believe that they are owed money by the firm should contact the JSAs using the details above.   

Customers can also contact our Consumer Helpline for further information.  

Are my funds protected by the Financial Services Compensation Scheme (FSCS)?

No. The FSCS only applies to certain types of activity. This does not include payment services. Under the PSRs, with which regulated payments firms must comply, there are requirements on how customers’ money should be protected, and these requirements are known as ‘safeguarding’. 

What is 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.

Is the FCA overseeing the special administration?  

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. We will work with the JSAs as appropriate. 

Being alert to scams 

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 us. 

Find out more about protecting yourself from scams


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