betting-bible
Newbie
- Messages
- 4
- Likes
- 1
Latest information on this being updated here WorldSpreads suspension updates
The recoverability of your money will depend on whether you hold winning trading positions with them or whether you just hold deposits.
The recoverability of your money will depend on whether you hold winning trading positions with them or whether you just hold deposits.
Yes gotta agree with you there Ross.
Hope nobody loses out.
This I think will benefit the big boys oarticularly IG as people will speculate who might be next.
brasil2000
Member
- Messages
- 99
- Likes
- 12
FT:
Shares in Worldspreads were suspended on Friday after the spread betting provider’s new executive team uncovered accounting irregularities, which sources close to the situation say is a suspected accounting fraud allegedly carried out over more than a year.
Nearly 5,000 clients of the company were unable to withdraw funds from their accounts after the accounting problems were discovered Friday morning.
The London-listed company allegedly mixed client funds with its own, allegedly leaving a substantial shortfall that is unlikely to be met from its cash reserves.
The suspected shortfall in the client accounts is estimated to be £10m-£12m, says one person close to the situation.
The Financial Services Authority despatched a team to Worldspreads’ London office on Friday, while a team from KPMG was sent to advise on a restructuring process. People close to the situation said that work would continue over the weekend to establish whether the company would enter insolvency proceedings, or be sold through a pre-pack administration. The result of the process is expected to be announced on Monday.
People close to the situation said that Worldspreads’ clients were likely to include a number of small spread betting operators, raising the possibility of a broader problem at the smaller end of the sector.
Ernst & Young, Worldspreads’ auditor, signed off on at least one set of annual accounts since the beginning of the period when the alleged fraud was being carried out, according to people close to the situation. E&Y confirmed that Worldspreads was a client, but said it could not comment for confidentiality reasons.
The discovery came two days after the abrupt resignation of Worldspreads’ founder, Conor Foley, who announced his departure on Wednesday after 12 years as chief executive. Niall O’Kelly, financial director, left the company on the same day. Neither has been accused of any wrongdoing.
“It’s hit us with enormous force in a dark tunnel,” said Lindsay McNeile, chairman of Worldspreads. Mr McNeile, who assumed an executive role on Wednesday, said the new management team had uncovered accounting irregularities on Friday morning, and had informed the market as swiftly as possible. “We don’t yet know the ramifications,” he added.
Worldspreads did not comment in relation to the allegations.
Worldspreads, one of only three spread betting companies listed in London, was founded in Ireland in 2000, and floated on London’s Aim exchange in 2007. It warned last month that it was likely to report a loss for the current financial year, blaming an increased number of successful bets by clients, leading to high payouts.
IG Group, London Capital Group and ETX Capital were suggested as possible bidders by people close to the situation, but this speculation was not confirmed by either company. A person close to IG Group said that it had little need to acquire Worldspreads, because many of the latter’s clients also had accounts with IG Group.
A person close to London Capital said that it would be “very interested” in a takeover of Worldspreads, while noting that the FSA was likely to prefer an absorption by IG Group, by far the biggest company in the sector.
Shares in Worldspreads were suspended at 37p, valuing the company at £14.7m.
Shares in Worldspreads were suspended on Friday after the spread betting provider’s new executive team uncovered accounting irregularities, which sources close to the situation say is a suspected accounting fraud allegedly carried out over more than a year.
Nearly 5,000 clients of the company were unable to withdraw funds from their accounts after the accounting problems were discovered Friday morning.
The London-listed company allegedly mixed client funds with its own, allegedly leaving a substantial shortfall that is unlikely to be met from its cash reserves.
The suspected shortfall in the client accounts is estimated to be £10m-£12m, says one person close to the situation.
The Financial Services Authority despatched a team to Worldspreads’ London office on Friday, while a team from KPMG was sent to advise on a restructuring process. People close to the situation said that work would continue over the weekend to establish whether the company would enter insolvency proceedings, or be sold through a pre-pack administration. The result of the process is expected to be announced on Monday.
People close to the situation said that Worldspreads’ clients were likely to include a number of small spread betting operators, raising the possibility of a broader problem at the smaller end of the sector.
Ernst & Young, Worldspreads’ auditor, signed off on at least one set of annual accounts since the beginning of the period when the alleged fraud was being carried out, according to people close to the situation. E&Y confirmed that Worldspreads was a client, but said it could not comment for confidentiality reasons.
The discovery came two days after the abrupt resignation of Worldspreads’ founder, Conor Foley, who announced his departure on Wednesday after 12 years as chief executive. Niall O’Kelly, financial director, left the company on the same day. Neither has been accused of any wrongdoing.
“It’s hit us with enormous force in a dark tunnel,” said Lindsay McNeile, chairman of Worldspreads. Mr McNeile, who assumed an executive role on Wednesday, said the new management team had uncovered accounting irregularities on Friday morning, and had informed the market as swiftly as possible. “We don’t yet know the ramifications,” he added.
Worldspreads did not comment in relation to the allegations.
Worldspreads, one of only three spread betting companies listed in London, was founded in Ireland in 2000, and floated on London’s Aim exchange in 2007. It warned last month that it was likely to report a loss for the current financial year, blaming an increased number of successful bets by clients, leading to high payouts.
IG Group, London Capital Group and ETX Capital were suggested as possible bidders by people close to the situation, but this speculation was not confirmed by either company. A person close to IG Group said that it had little need to acquire Worldspreads, because many of the latter’s clients also had accounts with IG Group.
A person close to London Capital said that it would be “very interested” in a takeover of Worldspreads, while noting that the FSA was likely to prefer an absorption by IG Group, by far the biggest company in the sector.
Shares in Worldspreads were suspended at 37p, valuing the company at £14.7m.
Can you please explain how and why this is the case?
Shaun12uk
Member
- Messages
- 92
- Likes
- 1
I believe that's because that the government backed deposits scheme will only cover hard cash on deposit and not necessarily open positions with unrealised profit!
But by that theory one would hope if you had a losing one that would be wiped off also - I doubt it!
But by that theory one would hope if you had a losing one that would be wiped off also - I doubt it!
stevespray
Experienced member
- Messages
- 1,289
- Likes
- 156
I understand that the Admin team have said that all open positions will be booked as per market prices at the close of business on Friday evening.
Last edited:
Police to investigate collapsed financial bookmaker WorldSpreads
Police to investigate collapsed financial bookmaker WorldSpreads | Business | The Guardian
Police to investigate collapsed financial bookmaker WorldSpreads | Business | The Guardian
