The UK Financial Conduct Authority (FCA) has today confirmed that Rational Foreign Exchange Limited (RFX) has entered special administration.
Ed Boyle and Kristina Kicks of Interpath Ltd were appointed joint special administrators (JSAs).
RFX provides foreign exchange and payment services to corporate and retail clients. It is authorized by the FCA to provide payment services under the Payment Services Regulations 2017 (the PSRs).
The directors of the company concluded that the company was insolvent and applied to the court for a special administration order.
JSAs are responsible for managing customer claims against the company and distributing funds to customers where possible.
The customer should contact JSA with any concerns. You can contact them directly at: rationalfx@interpathadvisory.com.
A PSD agent of the company, Xendpay Limited – which is under joint ownership – also went into administration at the same time. The affairs of this company are managed by the insolvency practitioners themselves, 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 JSA if they have concerns, questions or for any updates. The JSAs will collect as much information as possible from RFX’s creditors and customers about payments made or due from RFX.
Customers can also contact the FCA Consumer Helpline for more information.
RFX client funds 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, which regulated payment companies must comply with, there are requirements on how customers’ money is protected, and these requirements are known as ‘safeguarding’.
RFX had to keep money separate for its clients. Safeguarding is a key consumer protection measure under PSRs. The purpose of collateral is to protect clients’ funds in the event of a business failure. OEMs will conduct an assessment of all funds held by the company to determine which are protected for customers and which belong to the company.
After the special management order, the JSAs are responsible for RFX, but the company is still authorized by the FCA. JSAs are officers of the Court and must comply with all insolvency law. Appointed persons are authorized to act as licensed insolvency practitioners. OEMs have statutory objectives which include working with authorities, including the FCA.
All customers should remain alert to the possibility of fraud. If you receive a call from someone claiming to be from RFX, JSA or FCA, please end the call and contact them directly using the contact details provided by FCA.