Mon, July 22, 2024

LCG Bahamas Operation Termination Following FlowBank Bankruptcy

Прекращение деятельности LCG на Багамах после банкротства FlowBank

According to a notice on the entity’s website, it has become impossible for LCG Bahamas to operate after the liquidators’ appointment through the agreement between FlowBank SA and LCG Capital Markets Limited.

The Disarrays Following FlowBank’s Bankruptcy

Charles-Henri Sabet —a former LCG CEO—founded FlowBank-owned LCG. The entity was previously part of the London Group Holdings, which was liquidated after its 2018 delisting from the London Stock Exchange and NEX Exchange. The CEO bought LCG the same year, saving from the collapsing London Capital Holding.

 

The Bahamas-licensed entity LCG brand offers forex and contracts for different (CFD) instruments. The previous year, a Financial Conduct Authority-registered organization operating LCG UK switched its business model to an IG-introducing broker.

 

The Bahamas-registered LCG Capital Market Limited issued the notice a week after the FCA restricted deposit taking and new client onboarding to the UK-licensed entity.

Force Tragedy

Currently, the Bahamas-licensed LCG is considering an exceptional or emergency market condition is available that might prevent the performance of some or all their obligations. It’s determined to implement the condition under ‘force majeure affairs.’

 

According to the entity, force majeure events include any event, act, or occurrence (including riots, strikes, industrial actions, civil commotions, and regulations and acts of any supranational or governmental bodies or authorities) that, in their opinion, prevents them from maintaining an orderly market in at least one market/indices from which the entity accepts transactions.

 

The problem began last month after the Swiss regulator canceled FlowBank’s license, declaring the bank bankrupt. Currently, the LCG Bahamas is engaged with liquidators of FlowBank’s bankruptcy.

 

Most of Flowbank’s shareholders plan to take the necessary procedures to challenge the decision as they regard the regulator’s move as a ‘violation of rights.’

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