RationalFX enters special administration: Your next steps

Euan Robb

Rational Foreign Exchange Limited (RFX) entered special administration on 29th November 2023 under the Payment and Electronic Money Institution Insolvency Regulations 2021 with Ed Boyle and Kristina Kicks from Interpath Ltd appointed as joint special administrators (JSAs).

About Equals Money

What has happened to RationalFX?

RationalFX is a foreign exchange and payments services provider, catering to corporate and retail clients, authorised by the Financial Conduct Authority (FCA) to provide payment services under the Payment Services regulations 2017.

Applying to court for a special administration order, the firm's directors declared that RFX was insolvent, with the FCA imposing an own initiative requirement requirement (OIREQ) which restricted the activities it can undertake. See more on the FCA's website and the FS Register.

RFX, which is headquartered in the Docklands hub, London and was first established in 2005 have stopped accepting new customers and have shuttered customer accounts. The shuttering of customer accounts means customers cannot withdraw any funds.

The FCA have stated, "The JSAs are responsible for managing customer claims against the firm and distributing funds back to customers where possible. Customer should contact the JSAs with any concerns."

What is special administration?

"The Payment and Electronic Money Institution Insolvency Regulations 2021 introduced a new special administration regime for payment and e-money institutions. A special administration is similar to an ordinary administration however, the special administrators have an additional objective of returning customer funds as soon as reasonably practicable." - The Financial Conduct Authority (FCA)

What should I do next?

As stated by the FCA, RFX customers should contact the aforementioned JSAs if they're concerned, have any questions, or would like further updates. The JSAs will gather and provide information from creditors and customers relating to all payments involving RFX.

As customers of RationalFX, businesses will look to other providers to continue their commercial activity.

When looking for a new payments provider it's important to consider the methods used to hold customer funds (such as safeguarding), their heritage, and if they have publicly available financials.

The importance of safeguarding

Under the Payment Services Regulations 2017, there are specific requirements on how a regulated payments firm must protect and hold customer funds, these requirements and process is known as "safeguarding".

Safeguarding requires firms to store customer funds in designated accounts separate from their other assets as a protection measure, ensuring their safety if a firm fails.

Equals Money

At Equals Money (EQLS) we offer solutions for international payments, spend management and more, catering to both business and retail customers in the financial services sector. As part of the Equals Group, we're publicly listed on the AIM segment of the London Stock Exchange and have served over 20,000 businesses since forming in 2005.

Our Equals Money platform provides a money management and payments layer, without the requirement to change from your existing bank. Core functionality includes expense management via virtual and physical cards, domestic, bulk, and international payments capabilities supported by Tier 1 bank connections. Additionally, Because Equals Money accounts don’t fall under FSCS, with us your money is protected via safeguarding. We hold your funds in specially designated, safeguarded bank accounts, which keep them separate from our other assets.

Equals Money has a strong 18-year track record of continuous growth. Our products combines innovation with personalised service, providing security and connections to payment networks - all whilst retaining a strong compliance culture.

About Equals Money

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