Euro Exchange Securities UK Limited Enters Special Administration

The High Court has confirmed the appointment of special administrators for Euro Exchange Securities UK Limited, marking a significant development in financial regulation.

The High Court has officially confirmed the appointment of special administrators for Euro Exchange Securities UK Limited (EES)a move that underscores the serious concerns surrounding the firm’s operations. This decision, which was not contested by EES, signals the end of normal trading activities for the company and initiates a process aimed at safeguarding client funds.

Duncan Perring and James Bennett of Teneo Financial Advisory Limited have been appointed as joint special administrators under the Payment and Electronic Money Institution Insolvency Regulations 2026. Their immediate tasks include securing the firm’s assets, freezing funds, and ensuring that client money is returned as swiftly as possible.

The FCA’s Role and Concerns

The Financial Conduct Authority (FCA) played a pivotal role in this development, acting on serious concerns about EES’s business practices. The regulator highlighted systemic weaknesses in the firm’s financial crime framework and safeguarding arrangementsas well as issues with its ownership and governance structure.

These concerns indicated significant risks of financial crime, prompting the FCA to take decisive action.

Matthew Long, Director of Payments and Digital Assets at the FCA, emphasized the importance of combating financial crime. ‘The risk of payment firms being used by criminals to launder cash to fund other offences is significant,’ he stated. ‘Fighting financial crime is at the heart of our strategy, and that means using our powers to their fullest extent to protect consumers and the integrity of the financial system.’

Customer Information and Safeguarding

For customers of EES, the special administration process involves several key aspects. Firstly, it is important to note that funds held by EES are safeguarded. This means that when EES provided regulated electronic money or payment services, it was required to hold money separately for those customers. The purpose of safeguarding is to protect customer funds if a firm fails.

The special administrators will carry out an assessment of all customer funds held by the firm to confirm the current position. Customers concerned about their money should contact the special administrators directly by emailing eescustomers@.

It is also crucial to understand that the Financial Services Compensation Scheme (FSCS) does not apply to electronic money or payment services. E-money firms must comply with safeguarding requirements to protect customers’ money.

The Special Administration Process

A special administration is similar to an ordinary administration, where a licensed professional takes control of a company to manage day-to-day affairs. However, special administration has additional objectives, including returning customer funds as soon as reasonably practicable and ensuring timely engagement with payment system operators and the authorities, including the FCA.

Following the special administration order, the special administrators are responsible for EES but it continues to be FCA authorised and remains subject to the regulator’s rules. The special administrators are officers of the Court and must comply with all insolvency law. They have statutory objectives which include engaging with authorities, including the FCA.

Customers should be cautious if approached by companies offering to help recover their money. For most clients, there will be no benefit in involving a third party in making a claim. Any questions about the special administration process should be directed to the special administrators by emailing eescustomers@.