Lebanese forex broker AM Financials has recently notified customers that it is terminating business with them. Clients were instructed to either liquidate or transfer open positions to another financial institution. The notice was dated July 31st 2012 and gave no information for why AM Financials was terminating its relationships with its customers.
At Forex Magnates we have been researching for an explanation to why AM Financials is closing. While we haven’t been able to verify the exact reason, there are unconfirmed rumors in the market that AM Financials suffered, after a large credit line that they had extended went sour.
The full notice that was sent to clients has been posted on the company’s website and is listed below:
Notice to Customers
Re: Your account with AM Financials – Termination of business
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AM Financials S.A.L. has decided to terminate its relationship with trading accounts pursuant to Article 11 of the General Terms and Conditions of your agreement with us.
We therefore invite you to contact your relationship manager and to instruct him/her to transfer the positions currently held (or to liquidate such positions and transfer any resulting proceeds) to another financial institution.
The timeframe to complete this shift is within one month from the date of this letter, should the positions in your account be not liquidated or transferred by that time, AM financials reserves the right to liquidate all such positions and keep the proceeds in a non interest bearing account until we receive instructions to transfer them.
AM Financials thanks you for your business and loyalty and wishes you the best of luck.
31 July 2012
AM Financials S.A.L.