Fixi PLC is the next company regulated by the UK Financial Conduct Authority (FCA) to close its doors. The firm published an official announcement on its website detailing the events that led to the decision. Client funds held by the company have been frozen by the UK financial regulator.
Fixi PLC ceased operations yesterday after consulting with the FCA and professional advisers. The company requested that the UK regulator imposes restrictions on the company and its business.
After the FCA honored the request of the firm, it mandated Fixi PLC to immediately cease all regulated activities. The UK regulator will be allowing the broker to close any open positions it holds for itself or clients before December 28.
Clients of the company are also asked to close all of their open positions before the same date, but that action is subject to approval from the UK financial authority.
The FCA also mandates the company to require any funds held by third parties in connection with the firm’s trading activities, to be returned to Fixi PLC. The latter mention suggests the possibility of a breach of capital requirements or even a client money deficit.
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Clients’ Funds Frozen
The final lines of the official announcement displayed on the website of Fixi PLC show that the FCA needs to explicitly approve every withdrawal which is requested by the broker’s clients. The company is required to hold all client funds segregated for its customers in accordance with client money rules.
The broker also has to hold cash representing any monies due to clients who contract with the firm pursuant to title transfer collateral arrangements.
“Fixi PLC must not, without the prior written consent of the Authority, make payments of any of the monies representing these balances to clients,” the official statement concludes.
It appears that the UK regulator is investigating the company’s accounts for the time being. A customer service representative for the company couldn’t provide more details as to when might clients be able to access their funds.
Clients of the firm are said to be receiving further details on their registered email addresses. The company’s phone support line is also functional as of the time of publication.
This is the second broker in the UK that shuts down in December. Earlier this week we reported on the closure of Formax Prime.