MarketSpreads Resumes Trading as Suspension is LiftedApril 28, 2012Janice 1 Comment »
The Central Bank has removed its suspension on the trading license of Marketspreads, permitting the spread betting firm to re-open for business.
The Irish Central Bank, which regulates financial firms based in Ireland ordered MarketSpreads to suspend the provision of investment services to new clients and suspend its operations on April 5th following concerns which arised in relation to MarketSpreads’ 2009 accounts and the adequacy of the company’s book capital.
The suspension of MarketSpreads’ trading license followed the collapse of UK-based WorldSpreads plc, the company that was originally MarketSpreads’ mother company and from which MarketSpreads split in 2009. The issues under question stem from the period immediately before MarketSpreads’ present owners acquired the Irish business unit from its previous shareholder, WorldSpreads.
A statement from the Central Bank noted that Marketspreads has addressed the matters of concern with respect to its regulatory capital and financial accounts.
‘The Central Bank is satisfied with the steps which the firm has taken to address its legacy financial issues,’ the statement from the Bank continued. The firm has boosted its level of capital and provided a new set of financial accounts for 2010 which have now been approved by auditors.
MarketSpreads did so by injecting new investment and converting a subordinated loan of €2m provided by businessman Ray Curran into preference shares. A payment of €1.4m which was also due as part of the takeover of MarketSpreads in 2009 will also not be effected.
The company expressed gratitude to its clients for their support during a difficult period for MarketSpreads. It stated that client funds have always been 100% safe, intact and properly segregated.