Government launches review into Football Index collapse
The government today said it will launch a review into Football Index, the football trading platform that collapsed last month.
The website, which allowed users to trade ‘shares’ in high-profile footballers, suffered a crash after a sudden reduction in dividend payments. Some users lost thousands of pounds as a result.
Football Index went into administration shortly afterwards and the Gambling Commission has suspended its licence.
In a statement today Minister of State for Media and Data John Whittingdale said the government would appoint an independent expert to conduct a review of how the company was regulated.
“The government is taking the situation regarding Football Index and the concerns of those affected by it very seriously,” he said.
“It is reported that many thousands of customers are affected by the product’s collapse, with some having lost very large sums. This review will aim to establish both how this situation came about and what lessons we can learn from it.”
The review will examine the actions of the Gambling Commission and other regulators to see if they are any areas for improvement in the way complex financial products are treated.
It is the latest controversy to hit the world of football finance after six English clubs sparked fury over their decision to join a breakaway European Super League.