Portuguese authorities are now investigating the “situation caused by the closure of Premier FX” – the foreign exchange company with offices in Almancil once held in high repute which shocked the local community in July by shutting its doors from one minute to the next, ostensibly holding on to millions of euros in client funds (click here).
The true extent of this disaster came clear when administrators revealed there are “minimal credit balances” in all of Premier FX accounts held at Barclays Bank PLC .
Clients are facing “a significant shortfall” in any funds that they might expect back, PKF Geoffrey Martin & Co has explained (click here).
The situation continued to deteriorate last week when it became clear that Premier FX’s publicity blurb was misleading: the “secure, segregated client accounts” the company assured its customers their money would be held in did not exist.
As a result, administrators have told the 150 or so people and families hanging on every word in this story that they are not liable for any kind of compensation from regulating bodies within the sector.
The Resident has published a number of stories highlighting the confusing situation of foreign exchange regulation.
According to PKF Geoffrey Martin & Co, the responsibility of ensuring funds are held in secure accounts is left to companies themselves.
One of many customers left with life-changing losses as a result of this scandal has commented: “I do wonder who we can trust anymore. It looks like a cover-up to me from all those in authority”.
Thus, news that criminal investigators are now involved – particularly criminal investigators in the country where this UK-based company had so many customers – can only be heartening.
Visão magazine broke the story early today, after running with a two-page article on the scandal last week.
Elsewhere the company’s closure has hit customers in Mallorca (Spain), the UK and even the United States.
A source for the Public Ministry confirmed that Faro’s department of investigation and penal action (DIAP) is working “on a complaint that has been received about the situation”.
For background details to this story see our website, typing ‘Premier FX’ into the top right hand search box.
Meantime, we understand two major UK news outlets are on their way to Portugal to interview various people with a lot to say about what has been happening.
natasha.donn@algarveresident.com
