FCA Secures Special Administration of Euro Exchange Securities UK
The High Court confirmed appointment of special administrators for Euro Exchange Securities UK Limited following FCA action that forced the firm to cease trading.
EES will not contest the FCA-led cessation and will work with special administrators to return client money. The case underscores FCA willingness to use special administration powers swiftly where client asset and prudential concerns arise at investment firms.
Reinforces supervisory focus on CASS compliance, prudential resilience, and resolvability of small investment firms.
Action Required
Review counterparty exposures to EES, validate client money segregation controls, and benchmark against FCA CASS expectations.
Special administration appointments are rare and signal escalated FCA enforcement posture on client money risk.
Firms should reassess CASS controls, reconciliation governance, and wind-down planning. Counterparty and custody risk teams should screen direct and indirect exposures to EES and update RCSA ratings on client money risk.
“The High Court confirmed the appointment of special administrators for Euro Exchange Securities UK Limited (EES); EES will work with administrators to return client money as quickly as possible following FCA action.”