Forex broker FXCM UK slapped with £4m fine by City watchdog
THE FINANCIAL Conduct Authority (FCA) yesterday fined Forex Capital Markets and FXCM Securities (FXCM UK) £4m for allowing the US-based FXCM group to withhold profits of around £6m, which should have gone to UK clients.
FXCM UK also failed to tell the regulator that US authorities were probing another part of the group for the same misconduct.
The FCA says UK clients will be fully compensated, with credit being paid automatically into their accounts.
“Not only did FXCM UK fail to treat its customers fairly or correctly apply our rules, I am particularly disappointed that it was not transparent in its dealings with the FCA,” said head of enforcement Tracey McDermott. “We expect all firms to put customers at the heart of their business, and we have taken action to ensure clients of FXCM UK will get redress.”
FXCM UK chief executive officer Brendan Callan said the settlement is a “significant step” for the firm, when it comes to putting the issue behind them.
“We believe it is imperative that all firms operating in the retail FX and CFD market uphold the same high standards and execution policies which we fully implemented back in 2010”