6 Dec 2016 16:45
6 December 2016
LONDON CAPITAL GROUP HOLDINGS PLC
("London Capital Group", "LCG", the "Company" or the "Group")
Response to FCA Consultation Paper
London Capital Group notes the FCA's consultation paper, released this morning, on measures designed to enhance conduct of business rules in the contract for difference sector. LCG is committed to providing the highest standards of conduct and considers a uniform application of the rules will benefit both the industry itself, and the clients we serve.
The FCA has identified the risks to inexperienced retail investors posed by firms with a business model predicated on high churn of clients with a high loss rate. LCG has consistently focused on higher-value experienced premium clients who understand the markets and products they are trading. Furthermore, an integral part of LCG's "client first" proposition over the last five years is ongoing client education about markets, products and associated risks. LCG's business model and ongoing strategy is focused on generating revenue from client trading costs and therefore believes in establishing long-term client relationships.
LCG recognises that in its consultation paper the FCA is endeavouring to ensure that any regulation is delivered in a balanced fashion and looks forward to working closely with the FCA over the coming months.
For further information, please contact:
London Capital Group Holdings plc
Simon Hooks, General Counsel and Company Secretary
+44 (0)20 7456 7008
Allenby Capital Limited (Nominated Adviser and Broker)
John Depasquale / Nick Naylor
+44 (0)20 3328 5656
Notes for Editors
About London Capital Group (http://ir.lcg.com)
London Capital Group Holdings plc (hereafter "LCGH plc" or "LCG" or "London Capital Group" or "the Group") is a financial services company offering online trading services.
London Capital Group Limited ("LCG Ltd"), a wholly-owned trading subsidiary of LCGH plc, is authorised and regulated by the Financial Conduct Authority. Its core activity is the provision of spread betting and CFD products on the financial markets to retail clients under the trading names Capital Spreads, Capital CFDs and LCG MT. Its other division provides online foreign exchange trading services. LCG Ltd has a European passport and is a member of the London Stock Exchange. LCG Ltd also has access to international markets through its global clearing relationships.
LCGH plc is quoted on the London Stock Exchange's AIM market. LCG is included in the General Financial sector (8770) and Speciality Finance sub sector (8775) and has a RIC code of LCG.L.