The UK FCA authorised Fixi Plc. to announce its shut down, according to the official announcement made on its website and events that led to the decision. According to the release, the client money held by the broker has been frozen by UK FCA.
The operations were ceased yesterday after consultation with the FCA and professional advisors. The company made a request to the UK regulator to impose a restriction on the company and its businesses. After acknowledging the request, it mandated Fixi Plc to immediately cease operations and close any open positions it holds for itself or clients before the 28th of December 2018.
Clients are asked to close all their open positions before the same date. The FCA also mandates the company to require any funds held by third parties into connection with the firm’s trading activity should be returned to Fixi Plc. The official announcement in the company’s website also shows that FCA needs to explicitly approve every withdrawal request it receives from the broker’s clients. The company shall hold all client money segregated for its customers in accordance with client money rules.
The official statement mentions, “Fixi PLC must not, without the prior written consent of the Authority, make payments of any of the monies representing these balances to clients.” The company didn’t provide a timeline when might clients are able to access their funds. Clients will receive further details on the issue on their registered email address.
This is the second FCA regulated broker in the UK to shut its shop in December. Earlier this month, Formax Prime reported its closure.
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.