‘Business as usual’ for Plus500 after FCA review completed

‘Business as usual’ for Plus500 after FCA review completed

Wednesday, July 1, 2015
Plus500 has seen impressive H1 figures considering its problems

Plus500 says it has completed its review of customer accounts following a challenge from the Financial Conduct Authority (FCA) in May.

The online trading company said that 13,499 customers accounts have been fully assessed by the remediation team and unfrozen, with 72 per cent of these having already resumed trading.

The FCA has still to approve Plus500’s draft report, but the company says it is "confident" it will be backed by the regulator.

The update comes as, despite its recent problems, Plus500 also announced impressive year-on-year revenue growth of 17.9 per cent to $125m (€112.6m) for H1 2015 despite the negative publicity surrounding the FCA challenge.

“While there remains a number of customers with small, nil and/or dormant accounts still to request their accounts be unfrozen, these represent a diminishing proportion of Plus500UK's client money balances,” Plus500 said in a statement.

“The UK management team believe they can now be dealt with on a ‘business as usual’ basis along with new customer applications, when the latter are resumed under the new improved procedures.”

Revenue in the three-month period through to June 27 amounted to $43m, down from $45.5m in the corresponding quarter last year.

Of the customers that had their accounts frozen under the remediation plan, just 6 per cent have opted to cash out all of their funds.

Plus500 also confirmed that it will hold a special meeting on July 16 in which shareholders can vote on Playtech’s £460m bid for the company.

The takeover has been backed by Plus500’s board, with Playtech having bought around 10 per cent of the company’s shares last month.

However, Odey Asset Management, which owns around 25 per cent of Plus500 shares, has opposed the bid, saying it “materially undervalues” the online trading company. A Playtech spokesman told TotallyGaming.com last month that “We believe we've offered a fair price and that the process is ongoing."

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