30th Jun 2015 10:12
LONDON (Alliance News) - Plus500 Ltd Tuesday said that 72% of UK customers whose accounts have been unfrozen following a suspension under an anti-money laundering initiative required by regulators have resumed trading.
Plus500, which owns a platform that allows retail customers to trade contracts for difference - products that allow individual investors to bet on which way the prices of assets such as shares, commodities and foreign exchange will move - said it has fully reviewed and unfrozen 13,499 UK customers, meaning they can now trade, deposit and withdraw funds.
Plus500 said that 5,261 of the 9,758 customers who resumed trading have deposited more money into their accounts. The company added that 874 customers cashed out all their funds, equivalent to 6% of the customers unfrozen. It said that five accounts had to be refused re-opening after the anti-money laundering procedures. Plus500 said the "remediation plan" is now "substantially" complete.
The "majority" of customers' balances have been unfrozen, according to Plus500, which didn't give a specific figure.
Now that work on new procedures with compliance consultants is finished, Plus500 said it expects to be able to resume onboarding customers to its UK subsidiary in about three weeks. It is "confident" that the UK's Financial Conduct Authority will approve its revised procedures for anti-money laundering.
Plus500 reiterated its recommendation that shareholders should back a takeover offer from FTSE 250 constituent Playtech PLC. The offer, which values Plus500 at about GBP459 million, requires approval from Plus500's shareholders at a meeting scheduled for July 16.
The bid came after Plus500's share price plummeted in May as the company suspended a number of customers in the UK in order to verify their accounts.
Plus500 said second-quarter revenue amounted to USD43 million, compared with USD45.5 million in the corresponding quarter of the prior year.
Plus500 shares were down 0.7% at 387.00 pence on Tuesday morning, short of Playtech's 400p offer.
By Samuel Agini; [email protected]; @samuelagini
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