10 September, AtoZForex.com, Lagos – The British Financial Ombudsman has been called by multiple clients to challenge IG Group trading practices during January’s SNB crisis. The United kingdom’s Financial ombudsman will be awaiting response from IG Group for the decisions it took at the Swiss National Bank crisis that brought about a shock in the industry in January.
IG Group’s interim Chief executive, Peter Hetherington revealed in an interview with Reuters that approximately fifteen clients have filed complaints against the brokerage with the British arbitration service. IG Group is being accused by the traders of violating UK regulations by putting self interest as its sole priority rather than putting the interest of clients into consideration in the decisions it took when the Swiss National Bank dropped the EUR/CHF floor. However, the group denied doing anything illegal and stands by its business practices.
As regards to losses from “Black Thursday” event, IG Group resolved to pursue clients with demands to pay their debts and Peter Hetherington also confirmed that out of 341 clients, less than 80 with outstanding disputes now remains. Regardless of the relatively small number of debtors, IG Group reiterated that it is owed £15 million, indicating that these are big players and not just simple retail traders.
Hopes have got tarnished
Peter Hetherington was full of hope as he strongly believes that the UK ombudsman will rule in favor of his IG Group at the expense of its customers. With IG against UK Ombudsman, he expects that majority of the cases should be resolved by the end of the first half of 2016 as he awaits the adjudicator to give an opinion on the first case by Christmas.
In addition, if the UK chooses to leave the European Union, another location will be explored by the firm for its headquarters. Hetherington said, “clearly if Britain were to leave, it wouldn’t be that taxing to get one of our other branches turned into a proper home. And the obvious ones would be Germany or France. But you have to ask what would the attitude of the remaining EU be to products like ours if the UK were to leave.”
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