IG Group Expects Revenues Contraction in Fiscal 2019
- Regulatory changes are set to hamper growth for a year before returning to normal.
IG Group, a retail brokerage powerhouse, published its Annual Report for the year ending May 31, 2018, on Monday. The firm, which has experienced a challenging past 18 months, has stated that this will continue into the 2019 fiscal year.
The annual report follows the announcement of its financial results for the last fiscal year. In July, when the results were published, we took an in-depth look at the report and highlighted some of the key points of the results for your convenience.
In the report, however, the key point is clear - in the 2019 fiscal year the company is expecting to see a drop in earnings. This is due to the implementation of the measures announced by the European Securities and Markets Authority (ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term) in regards to contract-for-differences (CFDs) earlier this month.
The outlook for the 2019 fiscal year - decline in revenues, increase in costs
While the company stated that it is pleased that the nature and extent of the ESMA regulations in the UK and European Union (EU) are more clear, the broker yet again warned that it expects to lose approximately 10% of its revenue in the quarter following the implementation of the Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term. Furthermore, the firm added that it expects its operating expenses, excluding variable remuneration to increased in the 2019 fiscal year.
According to the statement, the total operating costs in 2019 are expected to be similar to the 2018 total operating costs at £290.1 million ($370.5 million). Despite the firm being prepared to go through a lean 2019 fiscal year, it expects to maintain the 43.2 pence per share annual dividend.
Andy Green
Source: IG Group
Commenting on the annual report, Chairman of IG Group, Andy Green said: “The last 18 months have been a challenging period in our Company, but our operating and financial performance has been strong… the Company expects that its revenue in the 2019 financial year will be lower than in 2018, reflecting the impact of the regulatory changes in the UK and EU, and the Company expects to return to growth after the 2019 financial year..."
“In the medium term, I believe that the initiatives we are putting in place now, coupled with our people’s commitment to innovation and championing the client, will see IG extend its industry-leading position and become even stronger.”
IG Group, a retail brokerage powerhouse, published its Annual Report for the year ending May 31, 2018, on Monday. The firm, which has experienced a challenging past 18 months, has stated that this will continue into the 2019 fiscal year.
The annual report follows the announcement of its financial results for the last fiscal year. In July, when the results were published, we took an in-depth look at the report and highlighted some of the key points of the results for your convenience.
In the report, however, the key point is clear - in the 2019 fiscal year the company is expecting to see a drop in earnings. This is due to the implementation of the measures announced by the European Securities and Markets Authority (ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term) in regards to contract-for-differences (CFDs) earlier this month.
The outlook for the 2019 fiscal year - decline in revenues, increase in costs
While the company stated that it is pleased that the nature and extent of the ESMA regulations in the UK and European Union (EU) are more clear, the broker yet again warned that it expects to lose approximately 10% of its revenue in the quarter following the implementation of the Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term. Furthermore, the firm added that it expects its operating expenses, excluding variable remuneration to increased in the 2019 fiscal year.
According to the statement, the total operating costs in 2019 are expected to be similar to the 2018 total operating costs at £290.1 million ($370.5 million). Despite the firm being prepared to go through a lean 2019 fiscal year, it expects to maintain the 43.2 pence per share annual dividend.
Andy Green
Source: IG Group
Commenting on the annual report, Chairman of IG Group, Andy Green said: “The last 18 months have been a challenging period in our Company, but our operating and financial performance has been strong… the Company expects that its revenue in the 2019 financial year will be lower than in 2018, reflecting the impact of the regulatory changes in the UK and EU, and the Company expects to return to growth after the 2019 financial year..."
“In the medium term, I believe that the initiatives we are putting in place now, coupled with our people’s commitment to innovation and championing the client, will see IG extend its industry-leading position and become even stronger.”