Like event risk, PLUS had limited upside in comparison to its peers, so today it was rude not to take advantage of the woes. PLUS not do not have the "plug and play" (not quite but you get the idea) to trading recruitment ease it previously had, save for a very basic offering, its now got limited advantages over its competitors. One has to wonder what issues the money laundering checks will have. Is this where people start to realise the difference between fully compliant and best practice. Many thanks for Twitter and Facebook (+ Plus) for advising on their own woes last week!
Plus500 Ltd.
("Plus500" or "the Company")
Statement regarding recent speculation
Plus500, a leading online service provider for retail customers to trade CFDs internationally, notes the recent fall in its share price and the market speculation that it has not paid its recent dividend. Plus500 can confirm that it paid its final and special dividend of $65 million in full on Friday 15 May as previously notified to the market. Plus500 currently has in excess of $88 million in cash reserves (excluding that held in client segregated accounts).
In addition, shareholders should note that Plus500's UK subsidiary, Plus500UK Limited ("Plus500UK"), has in recent weeks been implementing certain enhanced client on boarding and Anti-Money Laundering (AML) processes which have resulted in additional documentation checks being required on existing and new Plus500UK customer accounts.
This has led to an increased volume of documentation being reviewed by our client onboarding team, and some Plus500UK customers are currently experiencing delays in receiving the necessary approval to open new accounts, and new trades on their existing accounts and / or withdraw monies.
Only the Plus500UK regulated business is impacted, and the Company will continue to offer its services to new and existing customers through its other regulated subsidiaries in Cyprus and Australia. Currently c.50% of Plus500's revenue is derived from Plus500UK, and c.45% of Plus500UK's customers have passed Plus500's electronic verification process and are therefore allowed to trade.
Those customers who are impacted are not able to open new positions until they are approved by the client on boarding team, however they are still able to freely close out open positions and to service these existing positions with additional Margin. As usual, under AML regulations, existing customers (whether electronically verified or not) are unable to make withdrawals from their accounts until they have provided Plus500UK with fully compliant AML documents. All Plus500 customer funds are held within segregated client accounts, held with major financial institutions, until further withdrawals are permitted.
Plus500UK has notified and is in close dialogue with the FCA in respect of these changes to its AML processes.
*Bold is addition not added by the company!
Christmas cards to all at PLUS! Expect some volatility with the potential for ODEY and JPM to be in the market. Very unfortunate timing on purchases.
Atb Fraser
Fraser- wow- big move there. Plus 500 had a business model I didn't like and which didn't seem to have a future unless new inhabited worlds were discovered- they shred their customers until they are skint and then need to replace them- perhaps similar to bookies but a much more complex arena with CFDs and complex set of rules so likely to attract and denude real amateurs. They could well get a fine if the FCA have picked them up on loose AML procedures, but the main victim today is their rating, which drops dramatically.
ReplyDeleteCheers. The Leggie