Spreadbetting giant CMC Markets to consider London HQ move over FCA crackdown
Spreadbetting giant CMC Markets will consider moving its HQ away from London if the City watchdog pushes ahead with a clampdown on the industry.
The Financial Conduct Authority (FCA) last week revealed plans for stricter rules for firms selling “contract for difference” (CFD) products such as spreadbets for retail customers.
Read more: Spreadbetters respond to the FCA's new rule proposals
The announcement led to more than £1bn being wiped off the values of the UK’s major spreadbetting firms – CMC, IG Group and Plus500.
If the planned crackdown goes ahead, CMC will consider relocating its HQ, where around 350 staff are based, to Germany, Sky News first reported.
German watchdog Bafin also set out new CFD rules last week, but they were considered less extreme than the FCA’s.
A CMC spokesperson said:
The board of CMC will consider all options open to the business to ensure that shareholder value is delivered whilst continuing to offer the highest levels of customer protection.
Until CMC has finished discussions with the UK and German regulators as part of the consultation process the board is not in a position to make any comment on the outcome of its review.
Read more: Spreadbetters' shares tumble on news of FCA crackdown
Sky News also reported tonight that Peter Hetherington, IG Group’s chief executive, was in Germany today to discuss the Bafin reforms.