The UK-operating subsidiary of IronFX, 8SAFE UK Ltd, posted an operating loss for the full year 2016. The broker renamed its FCA regulated company to 8SAFE Limited back in November 2015. While the company has been using its matched principal license in the UK to channel trades to its Cyprus-headquartered entity, its business saw a massive decline last year.
The FCA-regulated subsidiary of IronFX reports that its revenues declined 73 percent when compared to last year, to $1.1 million. The company registered an operating loss of $240,000 after laying off 38 employees throughout the year.
IronFX UK is keeping its staff to a bare minimum, with only three employees remaining with the firm as of the end of 2016.
Sub-Lease of London Office Premises
The brokerage has also rented out two of its leased premises to third parties that are not connected to the company, booking about $872,000 in revenue last year.
Legal Risk Factor Beneath Ripple’s Lawsuit from SECGo to article >>
Total assets at the firm amounted to $20 million, with the trades and other payables figure amounting to about $17 million. This last figure probably includes client funds held with the UK subsidiary of the Cypriot brokerage.
IronFX UK appears to be channeling all of the retail foreign exchange and CFDs transactions of its clients via its Cyprus-based subsidiary. Back in December, Finance Magnates exclusively reported on what the Cypriot Auditor General termed a $176 million client money hole.
The company rebuked the numbers outlined in the report, stating that it was taking steps to rectify the details related to the investigation into client withdrawals. Six months after the publication of the report, no substantial information from the company has been publicized, leaving a lot of questions unanswered.
A deal between IronFX and a subsidiary of Currency Mountain Holdings Bermuda named Nukkleus was widely publicized last year, but in the end it led to no conclusion. The Chairman of Nukkleus Emil Assentato recently confirmed to Finance Magnates that the deal has been put on hold.