FCA Lifts Restrictions on FlowBank-Owned LCG's UK Licence
The UK’s Financial Conduct Authority (FCA) has removed all restrictions on the licence of London Capital Group Ltd (LCG), a retail forex and CFDs broker owned by the bankrupt FlowBank. The restrictions, imposed on June 13 due to FlowBank's bankruptcy, had prevented LCG from onboarding new clients, accepting client money, and conducting regulated activities.
LCG's UK entity, now free of these restrictions, operates as an introducing broker for IG Group. The FCA's recent update reflects the removal of these conditions from the FCA registry and LCG’s website. Despite FlowBank’s bankruptcy, LCG's operations in the UK remain independent of its troubled parent company. The Bahamas-regulated entity of LCG has ceased operations following FlowBank's financial collapse.
The Australian Securities and Investment Commission (ASIC) has imposed temporary bans on Shay Zakhaim and Anthony Anderson, former directors of XTrade, a forex and CFDs broker. Zakhaim faces a three-year ban, while Anderson faces a five-year ban due to their failure to manage conflicts of interest and ensure compliance with local financial services laws.
The bans follow the cancellation of XTrade.AU Pty Ltd's Australian Financial Services (AFS) licence three months ago, citing failures to meet general obligations from June 2018 to September 2022. ASIC highlighted XTrade's unconscionable conduct, aggressive sales tactics, and lack of adequate training for representatives as reasons for the sanctions. Despite losing its AFS licence, XTrade continues to operate in international markets under licences from Belize and South Africa.
Darwinex, a prominent online trading platform, will stop offering Contracts for Difference (CFDs) to new retail clients and residents in Spain starting July 31, 2024. This decision aligns with a directive from Spain's financial regulator, the Comisión Nacional del Mercado de Valores (CNMV), focused on enhancing consumer protection and regulating complex financial instruments.
Existing clients meeting specific criteria, such as those with established real CFD accounts or who qualify as professional clients, will not be impacted by this change. The CNMV's resolution from July 2023 imposes stricter controls on the marketing and distribution of CFDs and similar speculative products to retail clients without sufficient knowledge or experience.
The Trader Forge (TTF), a prop trading firm, has announced an immediate suspension of all operations due to unspecified regulatory compliance issues. CEO Ed addressed clients via Discord, acknowledging the frustration and inconvenience caused by the sudden halt.
Ed assured clients that TTF aims to resolve the regulatory matters swiftly and resume full operations by August 1, 2024. He emphasized the firm’s dedication to transparency and continuous improvement, highlighting efforts to rectify issues and restore seamless service.
Ed also unveiled a new partnership with Horizon Capital, which will enhance TTF’s service offerings and introduce the "Kronos and Kratos" challenge. This initiative, launching in August, aims to engage clients with innovative trading opportunities and community-driven activities.
Expressing personal accountability, Ed thanked clients and affiliates for their patience and support, reaffirming TTF’s commitment to delivering a superior trading experience and rebuilding its reputation in the trading community.
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