Sources close to the matter have confirmed to Forex Magnates’ reporters that GEMFX was approached by CWM FX in the latter part of 2014 and the companies reached the outlining of an acquisition agreement before GEMFX took steps to distance itself from CWM FX in the beginning of March.
As the news about the police raid on the Heron Tower became public knowledge, the target company has pulled back from any preliminary agreements.
According to the information obtained by Forex Magnates, there has been no tangible business relationship between the companies as GEMFX was going through the formalities of becoming a Financial Conduct Authority (FCA) authorized firm.
FXTM Appoints Marcelo Spina as Global Head of PartnershipsGo to article >>
there has been no tangible business relationship between CWM and GEMFX
Since there are certain compliance procedures which need to be approved by the regulator in order to change the ownership of the company, GEMFX had enough time to reconsider its involvement with CWM FX.
The prospective acquisition of GEMFX would have been a major addition to the portfolio of services offered by CWM FX, as it would grant it an FCA license to operate as a matched principal brokerage, which allows for Straight Through Processing (STP) of orders in rolling spot contracts, spread bets, CFDs and commodity futures.
Back in March, the premises which CWM held at the Heron Tower in London were raided by the City of London police, resulting in a number of arrests of senior executives at the company. After reports about the police investigation hit the wires, one of the major sponsorship deals between CWM FX and F.C. Chelsea was most likely terminated since the logo of the brokerage was taken down from the football club’s website.