Police are to be called in to investigate events at WorldSpreads, the financial bookmaker that collapsed into administration over the weekend after a £13m black hole was discovered in an account holding client funds.
Initial conversations between the Financial Services Authority and the City of London police on the crisis are understood to have taken place. The City regulator is now expected to formally contact the force over the coming days, a procedural move that will trigger police inquiries.
Foley, who edged up his stake in the company to 18% last month, did not return phone calls.
The administrators are now understood to be investigating the conduct of directors and conducting an "orderly wind-up" of the company, whose board includes former European commissioner Charlie McCreevy. Ex-footballer Kevin Moran, the first man to be sent off during an FA Cup final, left the board last year.
KPMG will also attempt to sell the company's technology. However, the accountants are unlikely to be able to recoup any money for clients by selling WorldSpreads' customer database, which contains around 3,000 active traders, as the terms and conditions that punters signed up to do not permit such a move.
Source Guardian
Initial conversations between the Financial Services Authority and the City of London police on the crisis are understood to have taken place. The City regulator is now expected to formally contact the force over the coming days, a procedural move that will trigger police inquiries.
Foley, who edged up his stake in the company to 18% last month, did not return phone calls.
The administrators are now understood to be investigating the conduct of directors and conducting an "orderly wind-up" of the company, whose board includes former European commissioner Charlie McCreevy. Ex-footballer Kevin Moran, the first man to be sent off during an FA Cup final, left the board last year.
KPMG will also attempt to sell the company's technology. However, the accountants are unlikely to be able to recoup any money for clients by selling WorldSpreads' customer database, which contains around 3,000 active traders, as the terms and conditions that punters signed up to do not permit such a move.
Source Guardian
Does anyone know if funds from clients outside the UK are covered by the FSCS?
ReplyDeleteHi there,
ReplyDeleteAll the information Regarding FSCS:
http://worldspreadsheist.blogspot.co.uk/p/financial-services-compensation-scheme.html
All highlighted for you
From what i understand clients outside the UK are fully covered by the FSCS
ReplyDeleteThanks for the info. Here is a blog for the greek spkeaking clients of worldspreads: http://www.wsvsgreece.blogspot.de/ The guy who started it is an a affiliate of worldspreads in greece and is in contact with the administrators. If there is anything new i will post the information here.
ReplyDelete