The UK Financial Conduct Authority (FCA) has fined 658,900 pounds ($821,000) WorldSpreads’s former CEO Connor Foley for market fraud and has banned him from performing financial regulated activities.
06 July, 2020 | AtoZ Markets – WorldSpreads Group (WSG) was a UK registered, financial spread betting company operating from London. The company offers credit, spread betting platform and brokerage services. It also operates worldwide.
Friday, the FCA has issued a decision notice to former CEO of WorldSpreads, Conner Foley, on the grounds of market fraud. The FCA has also fined £658,900 ($821,000) to Connor Foley and banned him from regulated activities. Foley and WSG were involved in drafting admission documents. It was prior to the WSG’s listing on the London Stock Exchange (LSE) in August 2007, according to the FCA.
These documents contained misleading and hide important information that investors needed to make well-informed decisions about the company. FCA also said, “It did not mention an internal hedging strategy by which certain of WSG’s subsidiaries hedged considerable trading exposures internally with company executives. This was not disclosed in the annual accounts until at least 2009.”
It also didn’t disclose that some executives took large amounts of loan from the WorldSpreads Group and its subsidiaries. However, FCA said:
“Between January 2010 and March 2012, large spread bets placed on the shares of WSG on the trading accounts of WSL clients on terms. It made statements in WSG’s Annual Accounts as to its credit policy false and misleading. Large spread bets carried out on two clients’ accounts by Mr Foley himself without the knowledge of the clients. This had the effect of giving the appearance of greater demand for WSG shares than in fact existed.”
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