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FIXI Brokerage Firm Shuts Down Operation

Samson Ononeme | Dec. 22, 2018
FIXI Brokerage Firm Shuts Down Operation

Forex brokerage firm, Fixi PLC has shared on its website that it has shut down operations after consulting with the UK regulator, FCA.

December 22, 2018 | AtoZ Markets - A London based forex and CFDs brokerage company, FIXI plc, on Friday, posted an official announcement on its website that it has stopped all its regulated operations following the consultation with the UK Financial Conduct Authority (FCA) and professional adviser.

Fixi Clients' Money Frozen by FCA

The online forex broker outlined on its website the events that led to this decision and also stated that the client money held by the company have been frozen by the UK financial regulator. From the findings of AtoZMarkets, the company itself requested that the FCA impose restrictions on the company and its business.

After the UK financial watchdog honored FIXI's request, it immediately ordered that the firm cease all regulated activities. The FCA has also allowed the broker to close any open positions it holds for itself or clients on or before the 28th of December.

Moreover, corporate clients have also been required to close all of their open positions before the same date, however, that action is subject to approval from the UK financial authority.

Funds that are held by third parties in connection with trading activities are to be recovered by the company as directed by the FCA. This indicates the possibility of a breach of capital requirements or even a client money deficit. The last requirement displayed on FIXI plc website state as follows:

"Fixi must continue to hold all client money segregated for clients pursuant to the client money rules and hold cash representing any monies due to clients who contract with the firm pursuant to title transfer collateral arrangements. Fixi must not, without the prior written consent of the Authority, make payments of any of the monies representing these balances to clients."

While the UK financial regulator seems to be investigating the brokerage's account it is not yet clear when clients might be able to access their funds as a customer care representative for the company couldn’t provide AtoZMarkets more details.

However, the broker has stated on its website that existing clients will be receiving further details through their registered email addresses.For further inquiries, the company has provided the following support line and email; "(02035106100), email fixi-enquiries@fixi.com or reach us on the website." 

Management Decision Led to Formax Prime Closure

Fixi plc is the second brokerage firm in the UK that shuts down this month. Earlier on December 11, the brokerage firm, Formax Prime Capital (UK) Limited, published an announcement on its website stating that it is closing its trading activities. The management reached this decision after the difficulties facing ESMA tightened regulations and the EU-regulated brokers, which led to a massive decline in the volume of brokers. Formax Prime closure of operations comes only three years after the firm acquired its FCA license.

In a bid to diversify its clients' base, the brokerage announced earlier May 2018 that it is launching Chinese and Spanish versions of its website. However, their effort to do this appears to insufficient to warrant the continuing operation of the company.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.