Many traders of SuperCapital Ltd, which also revolves around retail Forex brokers and launching agents, were forcefully locked out of their trading accounts for months on end. This is because the UK financial firm collapsed into administration, after the FCA’s investigation.
The Financial Conduct Authority is the conduct regulator for 58,000 financial services firms and financial markets in the UK. They are responsible for regulating the financial sector, which has a significant role towards the population of the UK. They are a self-governing public body financed completely by the firms they standardize, through their fees. They are liable to the Treasury, which is responsible for the UK’s financial system, and to Parliament.
SuperCapital followed the footsteps of the broker AFX Markets Limited, when they collapsed last month. There were serious allegations made on the lacking of its Cypriot license, and then they went off the grid. SuperCapital was stopped by the FCA because of the fact that they disposed of their assets, along with their clients’ assets. The investigation is currently ongoing and they are temporarily closed down.
The FCA also informed clients to be cautious if they were approached by firms that offer aid to return their assets, with regards to SuperCapital. The FCA also states that the majority of clients that there would be no point in involving a third party to retrieve their assets.
There is also the possibility that there are individuals and companies that would approach the interested persons, where they claim to help them retrieve their losses, for a fee. This form of activity is more commonly known as a “recovery room”. Although there are some government entities that could help clients who lost their money, they do not give them false hope or ask for money in return.
SuperCapital offers a payment solution for banks, wealth managers, brokers, and other financial entities. They used to offer a full middle and bank office, regulatory oversight, financial infrastructure, technology and support.
The Financial Services Compensation Scheme from the FCA
The FSCS cover custody assets and client monetary deficit for financial services firms, also including the costs related to their distribution back to clients, for eligible clients up to 85,000 Euros. The FCA shed light on the fact that if customers are not long-term, then any financial claims will not fall under the Financial Services Compensation Scheme. “The FSCS only applies to certain types of activity. This does not include payment services,” it said.