Alpha FX Group, a UK-based provider of FX services, announced today that the broker will not be able to serve clients in certain EU countries as an outcome of Brexit until the Group’s wholly-owned subsidiary in Malta gets operational.
According to the official trading update provided by the company, Alpha FX will provide services to the European derivates clients through reverse solicitation and operating on an execution only basis. The issue with reverse solicitation is that it is not implemented uniformly across EU countries and due to that reason, the company’s clients from the certain EU Member States will not be able to place new trades with Alpha FX until its Maltese subsidiary gets operational.
“The vast majority of preparations for the Maltese subsidiary were complete prior to 2021, with an in-principle no objection letter obtained from the Maltese financial services regulator. However, the Group chose not to initiate the final setup until a Brexit outcome was confirmed, conscious that requirements were vulnerable to change, and that the process could even have proven unnecessary,” Alpha FX mentioned in the official announcement.
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Mixed Year for Alpha FX
The broker experienced a mixed 2020 as the revenue jumped in the previous year, but the net profit dropped. Finance Magnates earlier reported about an important executive move in Alpha FX when the company’s independent Non-Executive Director, Matt Knowles moved from the Board to an active role of strategic advisor to play an important part in the Group’s strategic processes.
“Despite the challenges faced, the team ensured 2020 was another consecutive year of strong growth across all divisions of the business. The lifeblood of Alpha’s success is our people, and I am extremely proud of our team for rising to the challenge to deliver in the way they have. It is a real privilege to lead the Group, and I believe the progress made this year will set us in very good stead long into the future,” Morgan Tillbrook, Founder & CEO of Alpha, said in a statement.