Charles Sabet has sold his stake in London Capital Group (LCG) and transferred ownership to David Worsfold and Matthew Basi, two of the company's executives. Basi is currently the Managing Director of LCG, while Worsfold is the Chief Executive.
New Owners of the Old Business
The Financial Conduct Authority (FCA)-regulated entity is now fully owned by a company called MBDW Holdings (which appears to be the initials of the two executives), which is ultimately owned by Basi and Worsfold.
According to the latest Companies House filings, the ownership change officially took place today (Wednesday).
The filings, however, do not disclose the value of the transaction.
LCG changed its business model in 2023, becoming an exclusive introducing broker for IG Group, which was once its local rival.
- The Secret Behind LCG UK’s 2024 Profitability: 80% Expense Cut
- LCG UK Is Now Only an ‘Introducing’ Broker
- LCG UK Narrows Losses in 2021 despite 86% Revenue Decline
Independent Structure Saved LCG from FlowBank Collapse
The latest filing marks another change in LCG's ownership following the collapse of FlowBank, the Swiss bank founded by Sabet. FlowBank previously owned LCG, while LCG's UK operations continued separately after the Swiss parent failed.
Previously, LCG was part of London Capital Group Holdings, which encountered trouble after delisting from the London Stock Exchange and NEX Exchange in 2018. That same year, Sabet, then CEO, bought LCG, separating it from the troubled former parent, which was liquidated. He made structural changes to LCG's ownership after launching Switzerland-based FlowBank in 2020. Last year, the UK unit of LCG altered its business model, becoming an introducing broker for IG.
The Financial Conduct Authority subsequently imposed restrictions on LCG's UK entity following FlowBank's collapse. The restrictions prevented the company from onboarding new clients, accepting new client money and carrying out certain regulated activities. However, the restrictions were soon lifted due to the independent nature of the business.
Outside Britain, the LCG brand is also operated by a Bahamas-regulated entity, which has ceased operations following FlowBank's bankruptcy. Notably, the entities in the UK and the Bahamas operated independently and had no business ties except for offering services under the same brand and sharing the same parent.
Unlike the FCA-regulated entity, the Bahamas entity operated with close ties to its Swiss parent and even maintained “funds with accounts at FlowBank SA.” Following FlowBank's bankruptcy, running its operations became “impossible.”
