FFrees are they legit?

Joe-A

Hi all,

I'm massively confused by Ffrees, they say they are registered and regulated by FCA as a Credit Broker, yet offer Bank accounts whilst also claiming they aren't a bank???.

Seems like they are doing everything they can to not be regulated for banking but could someone help me understand how registered Credit Broker then offers what appears to be it's own bank accounts?

My concern would be that although they regulated as a credit broker, if were to use them for their "bank" accounts and it all goes Pete Tong and they go bust, my money wouldn't be protected like most banks?.

Ballard

https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000anPZDAA2

I hope that that link works but if not go to the main site and search. They are not authorised to hold client funds.

antrobus

Joe-A wrote: »

...Seems like they are doing everything they can to not be regulated for banking but could someone help me understand how registered Credit Broker then offers what appears to be it's own bank accounts?...

The bank accounts are provided by Contis Financial Services Ltd, which is an authorised electronic money institution. EMIs have to place customer money in a segregated account held with an authorised credit institution, i.e. a bank. (Or some alternative that provides the same safeguard.)

colsten

They are not regulated and authorised by the FCA. https://www.ffrees.co.uk/frequently-asked-questions?category=cat-14&answer=answer-423&all=0&

They are horrificly expensive. https://www.ffrees.co.uk/fees/

What attracts you to them?

colsten

Joe-A wrote: »

My concern would be that although they regulated as a credit broker, if were to use them for their "bank" accounts and it all goes Pete Tong and they go bust, my money wouldn't be protected like most banks?.

Although they don't hold your deposits themselves, you are right, neither they nor Contis are a member of the FSCS and none of your money is therefore protected under the FSCS.

Joe-A

colsten wrote: »

They are not regulated and authorised by the FCA. https://www.ffrees.co.uk/frequently-asked-questions?category=cat-14&answer=answer-423&all=0&

They are horrificly expensive. https://www.ffrees.co.uk/fees/

What attracts you to them?

Nothing actually attracts me to them I was just looking them up for work purposes which makes me wonder that if they aren't regulated are they easy to use in a Fraudulent way? so just trying to learn more about them really.

Joe-A

Ballard wrote: »

https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000anPZDAA2

I hope that that link works but if not go to the main site and search. They are not authorised to hold client funds.

Thanks for that, wondering if you could help clear up the money laundering act part for me, it says they aren't registered to it's regulations, however there is a little Info box stating

"FSMA firms with Part 4A permissions do not have to register as we already supervise their anti-money laundering systems and controls under both money laundering regulations and our handbook"

Is that basically confirm they aren't registered but still regulated for AML but in the conventional sense??

Ben8282

Joe-A wrote: »

wondering if you could help clear up the money laundering act part for me

Why? Are you planning on doing some washing?