Perhaps not so surprising, Kevin Ashby has resigned from his position of CEO at London Capital Group (LCG) which he has held since July 2013. The resignation occurs as Charles-Henri Sabet was appointed Executive Chairman of the broker last week. The Chairman’s appointment finalized financing of Sabet-led GLIO Holdings of £17.5M into LCG, which was approved by shareholders in August.
In leaving LCG, Ashby continues a revolving door of leaders at LCG, with his one year plus tenure lasting longer than his predecessor Mark Slade who had held the CEO position for only six months. Upon announcing Ashby’s resignation in their formal regulatory statement, LCG connected the news to Sabet and his group of investors’ arrival. As a result, LCG commented, “Kevin Ashby therefore has decided that it is an appropriate time to resign and concentrate on his other business interests.”
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With Ashby’s exit, Sabet takes over a firm in the midst of handling a dwindling customer base and falling revenues due to a combination of white label partners leaving, overall industry-wide institutional FX margin compression, and 25=year lows in FX volatility. Among its division, possibly the most promising one is LCG’s Prime of Prime offering, from which the broker may be able to benefit as larger primary banks have been contracting their prime brokerage services to smaller sized firms.
Separately, the Wall Street Journal reported that LCG has hired Rohan Ramchandani as its Chief Adviser for Spot FX and Risk Management. The hiring is notable as Ramchandani was fired from his previous position at Citigroup for his connection to the ongoing investigation of global regulators of FX price manipulation.
On the news, shares of London Capital Group (LCG.L) are up 1.7% to a current 29.75p.