FCA says it cannot lift restrictions on Wirecard amid concerns about client money safety - FinanceFeeds

FCA says it cannot lift restrictions on Wirecard amid concerns about client money safety

Maria Nikolova

Teams from across the FCA have been working with the firm, and other international and UK authorities, over the weekend.

The UK Financial Conduct Authority (FCA) today provided an update on the Wirecard matter.

Following last week’s news of €1.9 billion missing from the accounts of the German company, Wirecard, the FCA imposed requirements on the firm’s UK business so that it should stop carrying out regulated activities and not pay out or reduce any money it holds for its customers except on their instructions.

Today, the FCA said that its teams have been working with the firm, and other international and UK authorities, over the weekend, and that they have seen good progress by the firm in meeting the conditions the FCA set.

The FCA notes that it isa maintaining pressure on the firm to resolve these issues which would allow it to operate under certain conditions. However, the regulator notes that it cannot lift the restrictions without making sure that the firm have been able to satisfy all its concerns (for example, that all client money is safe).

As FinanceFeeds has reported, on 26 June 2020, the FCA imposed a number of requirements on Wirecard including, that the firm:

  • must not dispose of any assets or funds
  • must not carry on any regulated activities
  • must set out a statement on its website and communicate to customers that it is no longer permitted to conduct any regulated activities.

There are ongoing events in Germany concerning companies closely linked to Wirecard. Wirecard’s parent company, Wirecard AG based in Germany is currently the subject of law enforcement interest and insolvency proceedings. Wirecard AG is not supervised by the FCA.

Read this next

Industry News

Cboe boosts its incentives

A focus on market quality meant that the Cboe BZX exchange was able to capture 36% of all new ETP launches in the US in 2020

Industry News

European ETFs enjoy a trading boom

For Europe as a whole ETF turnover rose by an average of 46% in 2020 to stand at just under €683 billion, or $828 billion

Industry News

Virtu launches big data tools for the buyside

Leveraging existing data science capabilities is a clever retention tool, particularly if that data analysis can show your customers that you are doing a good job

Inside View

Beep beep. Why are FX brokers still using legacy technology? We all need to move on

FX, CFD and listed derivatives brokers need to take heed of how to engage brokers properly. We look inside the developments that are vital to the growth and future sustainability of brokers, and why legacy opinion and sitting on the fence will not work out. Here is the solution.

Industry News

OANDA adds new cross-border payment solution for companies in North America

The partnership combines OANDA’s deep-seated expertise in foreign exchange with Currencycloud’s best-of-breed payment technology and Shift Connect’s world-class customer support to offer a simple-to-use, reliable international money transfer solution for businesses, large or small.

Inside View

Inside view on endless crippling regulation in FX. Surely MiFID was enough?

It still looks as though the whole regulatory obsession with spot FX may be driven by the exchange lobby, hence if you can’t beat them join them – the only thing is of course that if most FX brokers brought their skill and tenacity to the multi asset market, they certainly would beat the exchanges hands down.

Industry News

FXOpen announces the launch of the ForexCup Trading Championship 2021

Global FX and CFD broker FXOpen has today announced they are offering traders the opportunity to compete with the best, to win 50,000 USD, with the launch of the ForexCup Trading Championship 2021.

Industry News

Citadel Securities dominates European FX, and is one of the most profitable businesses in the world

Non bank market makers are absolutely dominating the growth of FX order flow execution. Citadel Securities is now the largest internalizer in Europe by market share, a battle it is winning against Tier 1 banks alongside global leader XTX Markets. It is good to see the OTC sector holding its own.

Industry News

Playtech confirms it has been approached over the sale of Finalto

Finalto was described by the company as Playtech’s outstanding performer in H1 2020