Plus500 UK, the troubled CFD trading firm that fell foul of regulators last month announced that it has now ‘substantially completed’ the remediation plan issued by the FCA on 9 June.
As at close of business on 27 June, 13,499 Plus500UK customers had been fully reviewed by the remediation team and unfrozen, enabling those customers to trade and to deposit and withdraw funds. Of these 9,758 (72%) have resumed trading, with 5,261 making additional funding deposits. Of the customers reviewed and unfrozen 874 have cashed out all their funds (6%). In subjecting these customer accounts to the remedial AML procedures, only five accounts have had to be refused re-opening.
To date, the majority of customers’ balances have been unfrozen. 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. 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.
As announced in the Company’s statement on 22 May, Plus500UK was required by the FCA under a section 166 requirement notice to appoint a second Skilled Person who was asked to review the steps taken by Plus500 UK in regard to its remedial AML procedures for existing clients. The Skilled Person carried out a review of Plus500UK’s compliance with its remedial AML policies and procedures for existing customers in respect of a sample of existing customers. The Skilled Person sent a draft of its report to the FCA and Plus500UK on 26 June. The Board is confident that Plus500UK’s revised procedures will meet regulatory approval.
Plus500UK has been working with compliance consultants to agree on revised procedures to enable the onboarding of new customers. Such work has now concluded and onboarding of new customers to Plus500UK is expected to recommence in approximately 3 weeks’ time.