Mark Richards has left his position at GAIN Capital Holdings (GAIN) less than twelve months after joining the American retail broker’s Board of Directors. According to a statement released by GAIN this Thursday, Richards departure from the board will take place with immediate effect.
The precise reason behind Richards’ departure was not made clear by GAIN. We can, however, probably rule out any potential controversy. GAIN noted that Richards’ decision to leave the board of directors was not related to any actions taken by the company.
“Mr. Richards,” Said Gain, “has informed the Company that his decision to resign from the Board is not due to any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.”
Mark Richards and IPGL
Earlier this year, Finance Magnates reported on Richards’ initial appointment to the board of GAIN Capital. As we noted then, Richards joined GAIN as a result of the company’s acquisition of City Index, for $118 million, in late 2014.
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The connection between Richards’ appointment and the acquisition can be traced to his being the CEO of private equity firm IPGL Ltd. Prior to its being bought by GAIN, City Index – also a retail broker – was controlled by IPGL.
As a part of the acquisition deal, GAIN had to give a directorship position to someone at INCAP Gaming B.V. – another company owned by IPGL. The person chosen to join the board was Richards.
Now that he has left the board, it is unclear as to whether or not GAIN will find a replacement for Richards. The American broker said:
“The Company will separately announce the appointment of Mr. Richards’ replacement, if any, as [IPGL’s] designee on the Board once that person has been selected and approved by the Nominating and Corporate Governance Committee of the Board.”