WorldSpreads enters special administration

[Euler]

Financial spreadbetting firm WorldSpreads has appointed special administrators following the discovery of accounting irregularities.

http://www.bbc.co.uk/news/business-17426707

[Euler]

http://www.worldspreads.com/default.html

[LeTiss]

A number of months back, I said the same thing about Betfair, Peter

IMO, if everyone tried to withdraw their BF bank, I suspect there wouldn't be enough money in the pot to cover it

[superfrank]

oh poo!

i guess i'll have to contact the administrators.

i've got a decent wad in there.

[Euler]

IG GROUP HOLDINGS PLC
Statement re Worldspreads Limited

IG Group Holdings plc ("IG" or the "Group") notes that Worldspreads Limited ("Worldspreads") has appointed Joint Special Administrators following the identification of a material shortfall in client money.

The Group has no direct financial exposure to Worldspreads. Worldspreads had a UK market share of approximately 3%, compared to the Group's share of 41%, according to the most recently available market research.

IG Group fully segregates all individual client funds, even where regulation permits otherwise and does not utilise client money for its own purposes.

[Euler]

oh poo!

i guess i'll have to contact the administrators.

i've got a decent wad in there.

Sorry to hear that, sounds like most of it is still there.

[superfrank]

WorldSpreads in fraud inquiry
http://www.telegraph.co.uk/finance/news ... quiry.html

Despite the missing funds, KPMG is hopeful that clients will get all their money back. Clients had on average just £2,000 each on balance with the company, well below the £50,000 automatic protection given under the Financial Services Compensation Scheme (FSCS).

The FSCS, funded by the financial services industry, will be liable for any shortfall after recoveries made by the administrators. At its peak, the Dublin-based company, which listed on Aim in 2007, was worth about £40m. Shareholders are not expected to recover anything.

all this sort of stuff makes me wonder if there is any future for independent traders. Betfair is ruining sports trading with their profits tax and general shenanigans and financial trading is full of sharks. i will continue with both for the foreseeable but will be putting some serious thought into an alternative way to earn a living.

[andyfuller]

Just saw this about Market Spreads which used to be part of World Spreads:

http://www.independent.ie/business/stoc ... 78850.html

[superfrank]

i think i'm gonna avoid Irish financial firms in the future!

[PeterLe]

Sorry to hear that SF, hope you get it back
As LeTiss mentions above; I now keep the bare minimum in Betfair too..

[superfrank]

I received a cheque today from the FSCS covering my full WorldSpreads balance at the they went bust.

It only took about 6 months!