FCA Lifted Restrictions from London Capital Group 

The UK’s Financial Conduct Authority (FCA) has officially lifted all regulatory restrictions on London Capital Group Ltd (LCG), a prominent player in the retail forex and contracts for differences (CFDs) market. The decision comes in the wake of LCG’s parent company, FlowBank, declaring bankruptcy last month, which initially prompted stringent measures from the regulatory body.

LCG, operating as an introducing broker for IG Group in the UK, faced severe limitations imposed on June 13th, restricting its ability to onboard new clients and manage client funds. The FCA also imposed asset restrictions, preventing LCG from disposing of or diminishing its assets.

With the recent lifting of these restrictions, LCG is now free to resume its operations without the previous regulatory constraints. The removal of these measures was confirmed after the FCA updated its registry and removed the notice regarding LCG’s restricted status from the broker’s website.

FCA Lifted Restrictions from London Capital Group 

LCG, previously part of the troubled London Capital Group Holdings, underwent significant restructuring following its separation from the former parent and subsequent acquisition by FlowBank’s founder, Charles-Henri Sabet. The UK entity of LCG transitioned to an introducing broker model for IG Group last year, effectively diversifying its business strategy.

In contrast to its UK operations, LCG’s Bahamas-regulated entity has ceased operations following FlowBank’s bankruptcy, highlighting the independent operational structures of different global entities under the same brand. The Bahamas entity maintained ties with its Swiss parent, which became unsustainable after FlowBank’s regulatory issues and subsequent bankruptcy proceedings.

The recent developments mark a pivotal moment for LCG in the UK, signaling a return to normalcy following a period of regulatory scrutiny amid its parent company’s financial challenges.

However, challenges persist for LCG’s global operations, particularly in regions like the Bahamas where the cessation of operations underscores the impact of FlowBank’s financial troubles. Moving forward, LCG will navigate these complexities while focusing on rebuilding trust and stability in its markets.

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