FCA Lifts Licence Restrictions on FlowBank-Owned LCG in the UK

FCA lifts Licence restrictions, FlowBank-owned LCG regains full license in UK, marking a milestone in financial sector recovery and regulatory trust. The UK’s Financial Conduct Authority (FCA) has removed all limitations from London Capital Group Ltd (LCG)’s license. LCG, a retail forex and CFDs broker formerly owned by bankrupt FlowBank, faced restrictions since June 13 due to FlowBank’s insolvency.

FCA Lifts Licence Restrictions: FlowBank-Owned LCG’s UK Licence Freed

LCG’s UK division functions as an introducing broker for IG Group, formerly a competitor. Previously, the FCA placed restrictions on LCG, preventing it from onboarding new clients or introducing new clients through its broker business. Additionally, regulators prohibited LCG from accepting new client funds or conducting regulated activities. The regulator also imposed asset restrictions, preventing LCG from disposing of or reducing its own assets or customer funds, both domestically and internationally.

Currently, the FCA has removed the restrictions from LCG’s registry. The LCG website has also actively removed the notice regarding FCA restrictions.

Parental Troubles Resurface

LCG, under ownership by FlowBank and originally founded by former LCG CEO Charles-Henri Sabet, operates independently from its parent company.

In 2018, trouble struck London Capital Group Holdings, the company that formerly owned LCG. The London Stock Exchange and NEX Exchange both delisted London Capital Group Holdings. During that same year, Sabet, then CEO, purchased LCG, separating it from its struggling former parent, which eventually went into liquidation. Following the establishment of FlowBank in Switzerland in 2020, Sabet reorganized LCG’s ownership structure. Last year, LCG’s UK branch changed its business strategy to function as an introducing broker for IG.

LCG operates under two separate entities: a UK-based one regulated by the FCA and a Bahamas-based one. While they shared the LCG brand and parent company, they functioned independently.

The Bahamas entity, however, relied heavily on FlowBank, a Swiss company that held its funds. FlowBank’s bankruptcy and license revocation forced the Bahamas entity of LCG to close its doors. This financial dependence on FlowBank caused the initial problems for LCG.

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