On Friday 26th June, the Financial Conduct Authority (FCA) temporarily suspended the card issuer of our single currency card – Wirecard Card Solutions Ltd operations, and as a result, FairFX customers were unable to use their cards. After their investigation, the FCA lifted restrictions on Wirecard Card Solutions Ltd’s and all cards were back up and running on Tuesday 30th June.
How do we know this won't happen again?
FairFX has been offering financial services since 2007 and in that time, we have not experienced anything like this event.
The security of our customers’ funds remains of the utmost importance to us. Your funds have been safely held in safeguarded accounts by Barclays Bank Plc as per the FCA regulations. These funds belong to our customers and cannot be used by either Wirecard or FairFX. They are, and always were secure, but access to them was temporarily blocked by the FCA.
We understand that you may still be worried about using cards issued by Wirecard so, behind the scenes, we have accelerated the development of a new multi-currency card solution that is not dependent on Wirecard. This means that you only need a single card to hold balances in up to 15 currencies including euros and dollars, and will give you all the same great benefits, the same great FairFX brand and more.
Could the FCA do this again?
The FCA authorise and supervise financial service institutions in the UK - from banks, credit card providers and e-money providers, to pension funds and insurers. They can withdraw permission to provide financial services from any institution they supervise if it is proven that they have not met required regulatory standards. In this case, they temporarily suspended Wirecard’s services while they conducted their investigations, but have now provided consent to allow Wirecard to resume issuing e-money and payment services. For more information on the action taken by the FCA and the reasons for it, please see here.
What happens if Wirecard goes into administration?
Wirecard is required under their regulation to maintain appropriate measures to safeguard customers’ money. It does this by holding it separately from its own money in accounts with banks (or another credit institution). Effective safeguarding arrangements are critical to help ensure that customers’ money is protected and returned if a firm fails. Adequate safeguarding arrangements which are compliant with the regulatory requirements are a condition of Wirecard’s ongoing FCA authorisation.