The Private Fund management Team writes: "we have linked below a communication from the Financial Services Compensation Scheme which is self explanatory:
See, International Adviser Communication from FSCS - ‘UK Lifeboat scheme won’t cover expats using defunct FX firm’
Our suspicions have been confirmed by this communication and it is with regret that customers and clients of Premier FX will not be covered by the Financial Services Compensation Scheme. This is mainly due to the fact that Premier FX were acting and engaging with their customers and clients outside of their authorised and regulated remit under their licence with the Financial Conduct Authority (FCA).
We also have seen advice, recommendations and comments on social media where ‘advisers’ have informed that customers of Premier FX should direct their claims to the Financial Ombudsman. This, simply, is incorrect as the Financial Ombudsman's role is to act as arbitrators to investment, insurance and financial product disputes between customers and the financial institution/intermediary.
In addition to this, we also have read that some other FX currency companies have been appointed as a ‘conduit’ to the FCA, the Financial Ombudsman, and the Financial Services Compensation Scheme which simply is untrue. This is only a ruse to gain your custom.
Premier FX was acting under the auspices of Barclays Bank and we believe that this banking institution should assist the customers of Premier FX who have suffered losses. As to whether this will occur, time will only tell.
In addition, the company should have carried Indemnity and Fidelity insurances which would cover such eventualities. We believe in this situation that patience is the key and one should wait for the administrators’ communications after they have carried out the necessary accounting forensics. There is no way of circumventing the procedures as all parties have to follow the legals pursuant to the Insolvency Act.
How are you protected as a Private Fund Management client?
First and foremost, we do not handle or take client money on deposit in any form or manner. A client always will conduct their financial money transaction with the relevant third party financial institution which we have recommended the client uses. Nor will we use an FX currency broker to do this, unlike many financial intermediaries.
With all the financial and investment institutions that we recommend to clients, we have carried out financial due diligence to ensure that the custodian, investment, or pension company is financial secure and viable.
In addition, our recommended financial institutions have segregated client accounts so that our clients' capital is removed from any potential insolvency incurred with that financial institution. Therefore, in the unlikely event that a PFM recommended financial company were to become insolvent, your capital is secure.
It is for this reason that we use financial companies in the UK, British Isles, and Ireland. For instance, financial institutions based in Portugal, Luxembourg and Liechtenstein do not have segregated client accounts and if a financial institution in one of these countries were to become insolvent or go into liquidation, the client investor capital will become part of the mass bankruptcy proceedings of that financial institution within the relevant country.
In comparison to other financial intermediaries who are regulated in Malta, Gibraltar, Cyprus etc., Private Fund Management is regulated in Portugal and the UK by the respective regulators.
Where an intermediary is governed by a foreign regulator, such regulators in these countries only are concerned with the integrity of advice given within the boundaries of that country.
An intermediary being regulated in a country or jurisdiction that is unconnected to where the advice and documentation was completed or advice given can be detrimental.
Being regulated in the UK means that our clients will be covered by the Financial Ombudsman Service and also the Financial Services Compensation Scheme, and in addition, being regulated in Portugal means that you have a right to recourse in the country where the advice was provided. Together with this, Private Fund Management also carries Professional Indemnity insurance so that our clients are fully secure and protected.
The Private Fund Management Team
Premier FX Additional Update
Further to the above in connection with Premier FX, please see the link below to the Financial Services Compensation Scheme website. This is its official announcement concerning Premier FX.
https://www.fscs.org.uk/news/2018/august/premier-fx-limited-customers/
Private Fund Management:
Private Fund Management is a leading private client investment company, dedicated to rigorous and unbiased research with a relentless focus on excellent client service, independent of any third party or financial institution.
We are authorised and regulated in Portugal by the ASF and in the UK by the FCA. Since financial planning often involves both the UK and Portugal, a firm regulated to provide wealth management advice in these two countries can be the optimal situation for British National expatriates.
Whilst others offer standardised "off the shelf" investment products, we offer our clients personalised investment services. Our clients gain from lower charges and accessibility to their capital at any time, penalty free. Daily liquidity for our client's capital is a paramount priority.
Avenida Jose Dos Santos Farias
Loja 1, Lote 83/84
Almancil, 8135-167
Portugal
Tel.: +351 289 392 484
Fax: +351 289 392 483
Email: info@privatefund.management
