Johncarzx

Be careful

Police investigate after Britons lose holiday home money in £10m company collapse

A couple who lost £272,000 say the collapse "stole our future and our dreams" - but they won't get any compensation.

https://news.sky.com/story/police-in...lapse-11492763

SimonJ22

Get quotes from places like Currencies direct and then transfer with the best. Always ask for a final figure if I send this much money.

newpower

Are Currencies Direct run the same way as Premier FX? they state the same as Premier FX that the money is in a Barclays account.
Use Transferwise at least they only have your money for a minimum time.

Johncarzx

https://www.telegraph.co.uk/money/co...-money-abroad/

SimonJ22

I don't know PremiereFX, but the point it to get quotes and not just use a company someone suggests on the internet.
I have used several and always received the money promptly and different amounts are better at different places.

Johncarzx

That’s fine Simon until the day it does not arrive. Of course no one knows when that day will be. Do you understand this thread and the risks involved in using these companies?

bobd22

I use currency fair these days but that is simply for my general spending/bills money. I find them both competetitive and straightforward, the money is in my Spanish bank within 24 hours normally. I have never had a problem ( but as John says you never do until the day the money never arrives). They are based in Ireland and they do confirm that any money lodged with them is kept in a separate account with Bank of Ireland. Important as I often drip feed in to my account with them to build up with a desired exchange rate set to make the transfer. I can't remember who it was we used to buy nearly 11 years ago one of the bigger ones. That was done on a forward contract with a deposit made and remainder only paid in when transfer was met.

Johncarzx

I agree Bob, I also use a well known company for day to day living costs. If it went pear shaped I would be annoyed but not skint. It’s the big transfers that cause the greatest concern, having read this horror story I think I would use bank to bank and suffer the cost and crap exchange rate sooner than take the risk.Bradford boy.

Stillgame

Totally agree. For a big sum eg. property purchase I would prefer to use the big banks even though their transfer costs maybe higher. Other than that, for regular transfers I've used CF for a number of years without a problem.

bobd22

Just come to me my transfer to buy our house was with HiFx which is an authorised company. But yes for absolute belt and braces and what it costs I agree bank is safest.

Johncarzx

I think these type of companies will take a big hit on this story and the banks will think all their birthdays have come at once.

Although the Financial Conduct Authority did get involved eventually, it doesn’t say a lot for them and so called regulation, plus all the companies that boast they are regulated by them. Maybe they will change their name again to the Arthur Daley Authority. A nice earner for doing nothing.

Norm_uk

I've used a FCA regulated exchange firm for years, and when I was a financial advisor used to recommend them to my clients who were transferring in all sorts of currencies - never had one complaint in 12 years nor any issues myself.

Feel free to PM if anyone wants an introduction.

N.

Johncarzx

Quite true but even though they are supposed to be regulated do clients all know there is no compensation scheme like banks. Do they know the full risks they are taking in order to get a few dollars more? As you say ‘’never had one complaint in 12 years’’, but when it goes wrong, it goes wrong big style. Police investigate after Britons lose holiday home money in £10m company collapse. They did not collapse because they forgot to pay the milkman.

Perhaps now a compensation scheme should be introduced, because it is clear FCA regulation is not adequate, or are you saying it is?.

An introduction to what?

Norm_uk

Given the FCA has limits to compensation for many things, including bank deposits it would be up to the consumer to look at what is acceptable risk or not if they are relying on regulation and/or compensation schemes to bail them out if a company is involved in wrongdoing.

In the case of currency exchange it's important to note two different terminologies:

FCA Regulated - When a firm is regulated it is required to safeguard your money by keeping it separate from company funds, so if a firm goes bust, you are much more likely to get your money back.

FCA Registered - This is a much weaker standard, requiring only that the firm is UK based and none of it's managers have ever been convicted of a financial crime. The firm may opt to safeguard your money by keeping it separate from company funds but is not required to do so by law in this case.

A list fo firms Registered and Regulated firms can be found here - people should always do their homework - if they do want to use an FX firm they should look for Regulated firms only...like the firms I used to recommend to my clients when I was an IFA, and the firms I would introduce people to if asked these days as well. I would also suggest people look deeper as well at the firm's wider activities (if any), the past of their management (some firms seem to be run by people with no discernable experience) and if they have been able to get equivalent regulation/registration in other robust juristictions (and what the conditions of that are).

The FCA is starting to clamp down on firms that market interbank rates (which clients will not get) as they are misleading and unachievable, and I think we will see even more oversight in future which is a good thing, perhaps even a compensation scheme or further tightening of how separate client funds are from the business in the case of regulated firms.

N.

Johncarzx

But this firm was regulated.