If this broker was not under FSA people would have got ZERO
Worldspreads - Wikipedia, the free encyclopedia
So if this happens witha Cyprus based broker what would be the outcome
Or for that matter even ASIC regulated,,,
Lesson = Better regulation and level playing field and then let the punters take the punt on the market
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On 19 March 2012 Worldpsreads entered administration.[4] On that date it appeared that there was only £16.6m of the £29.7m of customer money left that should have been in the business to cover customer balances.
In a trading update on 28 February 2012, CEO Conor Foley stated the group maintained a “strong balance sheet.” However the update was a profits warning suggesting a benign market and investor profits were hitting their business. This in turn suggested that the company was not hedging its bets in the market and acting as its own market maker, losing money when its clients made profits.
The demise of the company followed the departure of the company's finance director, Niall O'Kelly, and CEO, Conor Foley. It was suggested in a Reuters article as not unconnected. The irregularities emerged soon after their exit.[5]
Worldspreads had over 5000 spread betting customers at the point it failed. Almost all clients were covered under the UK Financial Services Compensation Scheme and were paid compensation by the scheme.
Worldspreads - Wikipedia, the free encyclopedia
So if this happens witha Cyprus based broker what would be the outcome
Or for that matter even ASIC regulated,,,
Lesson = Better regulation and level playing field and then let the punters take the punt on the market
Collapse
On 19 March 2012 Worldpsreads entered administration.[4] On that date it appeared that there was only £16.6m of the £29.7m of customer money left that should have been in the business to cover customer balances.
In a trading update on 28 February 2012, CEO Conor Foley stated the group maintained a “strong balance sheet.” However the update was a profits warning suggesting a benign market and investor profits were hitting their business. This in turn suggested that the company was not hedging its bets in the market and acting as its own market maker, losing money when its clients made profits.
The demise of the company followed the departure of the company's finance director, Niall O'Kelly, and CEO, Conor Foley. It was suggested in a Reuters article as not unconnected. The irregularities emerged soon after their exit.[5]
Worldspreads had over 5000 spread betting customers at the point it failed. Almost all clients were covered under the UK Financial Services Compensation Scheme and were paid compensation by the scheme.
