The London-based broker has been in the limelight since the police raid and arrests at CWM World’s offices at the Heron Tower. The group maintains it has apparently been a victim of several former employees, driven by personal animosity.
According to a company statement obtained by Forex Magnates’ reporters, CWM have made an offer to the City of London Police to ring fence client funds, in addition to those being invested, to underwrite investors’ protection and allay any genuine concerns.
Earlier this week, it was reported that Leverate, the broker’s liquidity provider and operator, has cut all ties with CWM FX. The broker has announced to his clients and informed Forex Magnates it is seeking a new provider.
The latest set-back adds to the list of problems the firm is facing as its ‘sales pitch’ of mingling with the rich and famous comes to a halt.
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CWM World have taken sports sponsorship as their entry point into the minds and hearts of consumers and investors, the firm offers a range of products including financial services, property investments and payment services, according to the group website.
On the group website, the firm promotes sports sponsorships which include football, rugby, sailing and motor sports.
It comes as no surprise to CWM FX, the firm has already seen its name removed twice from the UK regulator’s website with firms that it has or planned to do business with. CWM FX and CWM World were both registered on the FCA for short periods of time, however on both occasions the firm was removed.
Both CWM FX and Chelsea FC were not available for comment.
Forex firms have pounced on the idea of football sponsorship as their route to enhancing their brand equity. The world’s largest firms are often associated with the most popular teams and FX firms have been able to rub shoulders with the elite stars.
Industry participants has expressed their concerns that the latest affair may cast a shadow over the highly popular marketing strategy, aimed at gaining wide recognition with broad audiences. This fears arise as some of the most strictly regulated brokers are taking part in such sports partnerships, including publicly listed firms.