Can we keep our bank while we test a new FX provider?
Yes, and you should. Most funds run the new provider in parallel for a few weeks, so nothing depends on it until it has proved itself.
Opening an account with a specialist provider does not close anything at your bank. Your bank keeps receiving capital, paying out and doing FX exactly as now. The new provider is used first for small test payments, then for one real flow, and only then for the rest.
Two things to check before you start. First, read the account covenants in any subscription line or other fund finance facility: some require investor capital to be paid into accounts held with the lending bank. That does not stop you converting elsewhere, but it decides where money lands first. Second, check whether your administrator has standing instructions that name the bank, so you know which documents will need updating later.
Running two providers for good also reduces the damage if one fails. Argentex, an FCA-authorised payment and e-money firm with fund clients, stopped carrying out regulated business on 17 July 2025 and entered special administration on 21 July 2025. Clients with a second provider already set up could keep paying.
What does a 90-day switching plan look like?
Five stages over roughly thirteen weeks: baseline, quotes, due diligence and onboarding, testing, then moving flows and reviewing the result.
| Weeks | Stage | What happens | Check before moving on |
|---|---|---|---|
| 1 to 2 | Baseline | A cost review of 6 to 12 months of trades: spread to mid by pair, size and quarter, plus fees and service problems. | You know what you pay now, in basis points, and what the switch has to beat. |
| 2 to 4 | Blind quotes | Your real flows priced by several providers without your fund's name. Indicative rates, fees, cut-offs and onboarding times compared side by side. | A shortlist of one or two providers, with the reasons written down. |
| 3 to 6 | Due diligence and onboarding | FCA status, safeguarding method and ownership checked for each shortlisted provider. The chosen provider runs its own KYC on each fund entity, the GP and any SPVs that need accounts. | Accounts open in the right entity names, users and approval rules set up. |
| 6 to 10 | Test and pilot | Small test payments in each currency, then one live flow such as a supplier run or a single distribution. The old account stays fully open. | Test payments settled on time with the right reference and the right beneficiary name. |
| 10 to 13 | Move and review | Remaining flows moved one at a time. Instructions updated through verified channels. A review of the first trades against the baseline. | Spread and service match what was quoted. Old provider kept open until forwards mature. |
Larger fund groups with many entities sometimes take longer at the onboarding stage. Nothing in the plan needs the old provider to be closed early, so a slow stage delays the saving, not your payments.
Why has our rate got worse since we signed up?
Often because pricing drifts after onboarding. A provider that quoted keenly to win the account can widen its margin later, a few basis points at a time, and few funds check.
It is the most common reason funds come to us wanting to switch. The cost review shows it clearly when spreads are plotted by quarter. We explain how to spot it, and how to stop it happening again, in our guide to FX rate creep.
What happens to forwards we have already booked?
They stay where they are and run to maturity. Existing forward contracts cannot simply be moved to a new provider.
A forward is a contract with one counterparty, often backed by a credit line or collateral with that provider. Transferring it would need both providers to agree and the new one to take on the credit risk, which is rare. So the old account stays open, with enough set aside for any margin calls, until the last contract settles. Put the maturity dates in the switching plan so nobody closes the account early.
How do we update capital call and distribution instructions safely?
Change bank details only through channels investors already trust, and ask them to confirm by calling a number they already hold. Payment diversion fraud is the main risk in any switch.
- Tell investors about the change in the next capital call notice or a signed letter from the manager, not in a standalone email.
- Ask investors to verify new receiving details by phoning the administrator or the manager on a number from their existing records.
- For distributions, confirm each investor's bank details from your records or the administrator's KYC file. Treat any request to change them by email as suspect until verified by phone.
- Run the first call into the new account alongside the old one where you can, so a late payer to the old account is not missed.
- Update standing instructions with your administrator, auditors and any lender at the same time, and record who approved each change.
FundFX never sends, receives or changes payment details for anyone. If someone claiming to be FundFX asks you to change bank details, do not act on it and call us on 020 7566 0044.
What about deal completions during the switch?
Leave a live completion with the provider that is already set up. Only use the new provider for a completion once it has handled test payments in that currency.
A completion has a fixed date, often a fixed time, and lawyers waiting for confirmation of cleared funds. That is the wrong moment to discover a cut-off or a beneficiary name mismatch. Our guide to currency for deal completions has a completion day checklist.
Which approvals and payment controls need setting up?
At least the same controls you have today: two-person approval, user roles, limits and a record of who did what. Set them up before the first live payment, not after.
- Dual authorisation for payments and trades, with limits by user and by amount.
- Beneficiary approval, so a new payee needs a second person before money can go to it.
- Strong sign-in for every user and prompt removal of leavers.
- Statements and trade confirmations in a format your administrator can load without rekeying.
- A named contact at the provider and an escalation route for a payment stuck on a deadline.
What does FundFX do at each stage?
We do the comparison and the organising. The provider does the money: KYC, execution, payments and safeguarding.
| Stage | FundFX | The provider | Your fund |
|---|---|---|---|
| Baseline | Runs the cost review and writes it up | Not involved | Shares the trade history |
| Quotes | Puts the requirement to several providers without your name | Prices the requirement | Chooses whether to go further |
| Due diligence | Collects facts on authorisation, safeguarding and ownership | Answers questions, provides documents | Decides which provider to use |
| Onboarding | Coordinates timings and checklists | Runs KYC with your fund directly | Provides KYC documents to the provider |
| Payments | Never touches money or payment details | Executes trades and payments, safeguards funds | Instructs and approves payments |
| Review | Compares results with the baseline and re-quotes yearly | Provides statements | Decides whether anything changes |
To start, send us a blind quote request for one of your regular flows, or ask for a cost review of what you pay now.
Sources
- Financial Conduct Authority, Argentex LLP enters special administration, checked 1 November 2026.