9th Jun 2015 07:05
LONDON (Alliance News) - Plus500 Ltd Tuesday said work is continuing to enable to resume trading those UK customers whose accounts were frozen due to the contracts-for-difference trading provider's work to implement anti-money laundering procedures.
News of Plus500's work on anti-money laundering processes and pressure from short-sellers led to a big drop in the company's share price over the course of May, with FTSE 250 gaming technology company Playtech PLC launching a takeover offer of 400 pence per share for the company at the start of June. Playtech's offer has been described by Plus500's biggest single shareholder, Odey Asset Management LLP, which has a 25.49% stake in the business, as "an opportunistic bid exploiting current regulatory issues and risks".
In a statement, Plus500 said that 5,205 customers whose accounts had been unfrozen have resumed trading, equivalent to 61% of the total number that are free to trade, with 457 customers cashing out all their funds. However, the company said it is "too early to anticipate the ongoing behaviour of those customers who are now free to trade".
"We have made progress in reapproving customer accounts during the last week and as a result expect a majority of clients who have completed the remedial AML procedures to be unfrozen within the previously expressed timeline. This will be followed by contacting inactive customers," Chief Executive Gal Haber said in a statement.
Plus500 said it has begun to communicate with inactive customers, encouraging them to supply the documents needed to verify their accounts and clear them to trade.
"Plus500UK continues to work with compliance consultants on agreeing on the required procedures to enable the onboarding of new clients," the company said.
By Samuel Agini; [email protected]; @samuelagini
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