Funds not protected as Canary Wharf firm RationalFX goes under
RationalFX, a foreign exchange firm founded by former London deputy mayor for business Rajesh Agrawal, has entered special administration.
RationalFX customers have been warned by the City watchdog that their funds are not protected by the financial services compensation scheme, which protects customer funds in regulated banks but not in payment services.
The firm has been placed into special administration, with administrators now tasked with carrying out an assessment of all funds held by the firm to establish which are safeguarded for customers and which belong to the firm.
RationalFX ceased to allow customers to access their funds at the start of last week.
Ed Boyle and Kristina Kicks of Interpath have been appointed to handle the admnistration, the FCA said in a statement published on its website.
They are responsible for managing customer claims against the firm and distributing funds back to customers where possible.
Angry customers took to social media last week after receiving emails from the firm.
Agrawal left the firm last year.
In a statement last week, the former deputy mayor for business told City PM : “It is very sad that these businesses have had to stop trading because of the current climate in this sector.”
He added: “Despite the fact that I stood down as chief executive in 2016, and stepped down as a non-executive director in April 2022, I hope that the management can do everything they can to support customers and staff affected by this decision.”
Agrawal stood down as deputy mayor at the beginning of last week as he has been selected as a Labour candidate at the next election.
City PM understands the administration of RationalFX and Agrawal’s stepping down are unrelated.