UK-based financial services solutions provider FINSA Europe Ltd. has informed some of its clients that as a result of an FCA (Financial Conduct Authority) regulatory review, it will no longer be able to provide a trading service to two of its brands. The affected broker has been operating under the trading names Financial Spreads and Financial Spreads Plus, and is believed to represent a very small percentage of FINSA Europe’s total client base.
The broker has already notified its relevant brands that it will no longer be able to accept any new open trades or new deposits from clients. However, clients will be able to fund open positions or margin calls on existing positions until the end of the week. The firm has reassured its clients that funds will continue to be held securely in segregated bank accounts and can be withdrawn by them at any time.
The firm adds that, further to the restrictions placed on new trades and deposits, Financial Spreads has requested its clients to close all open positions by 4PM on the 24 of July. Any open positions that remain open after this time will be closed by the firm at the prevailing market rate.
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Clients’ access to the trading platform will be limited to a ‘read only’ or ‘close only’ basis. This restricted access may result in the need for clients to call the firm to action regarding the closure of any open trades they hold. Any funds remaining on client accounts at the close of business this Friday will be returned to its sources the following week.