Shares of Australian digital property settlement company PEXA Group Limited (ASX: PXA) rose sharply on Wednesday, hitting their highest level in nearly a month.
This increase followed important approval from the UK’s Financial Conduct Authority (FCA), which allowed PEXA to operate as an Authorised Payment Institution (API). This approval is crucial for PEXA’s plans to expand internationally.
The FCA approved an application from PEXA’s UK branch, Digital Completion UK Ltd. This approval is necessary for PEXA to introduce a key feature for its upcoming UK Sale & Purchase product. Securing API status is a major step for PEXA, which began its first overseas operations by entering the UK market last year.
With this regulatory hurdle cleared, PEXA can now work on its UK Sale & Purchase product, expected to launch in the second half of 2025. The FCA approval also allows PEXA to act as a Third Party Managed Account provider, helping conveyancers with property transactions in the UK.
PEXA Group CEO Russell Cohen highlighted the importance of this approval. He said, “The FCA approval of our API application is a key part of our UK strategy, especially for launching the Sale & Purchase product.” Cohen added that the company is now in a better position “to build relationships with UK financial institutions and legal practitioners, as we seek industry commitment to our platform.”
Investor confidence showed in the market reaction, with PEXA shares rising significantly. During morning trading, the stock was up nearly 4%, making it a leading performer on the ASX 200 index.
This upward trend put the stock on track for its fifth straight day of gains, potentially marking its best monthly performance since September 2024. This signals strong support for PEXA’s strategy in the UK property market.