- LCG offshore arm, FlowBroker, shuts down following FlowBank’s bankruptcy and liquidation.
- Swiss regulator FINMA is overseeing the reimbursement and asset protection process to repay FlowBank’s creditors.
In a major development, London Capital Group Ltd (LCG), a London-based Retail FX and CFDs broker, has ceased operations of its offshore arm, LCG Capital Markets Limited in the Bahamas. Operating under the LCG and FlowBroker brands, the offshore entity’s shutdown follows the bankruptcy of its parent company, FlowBank.
FlowBank, a Switzerland-based neobank founded by former LCG CEO Charles-Henri Sabet, was forced into bankruptcy and liquidation last month by Swiss financial regulator FINMA. The regulator cited FlowBank’s inability to meet minimum capital requirements and concerns over potential over-indebtedness.
The appointed liquidator, Walder Wyss Ltd., is currently reimbursing secured deposits to former FlowBank clients while also working to protect and monetize FlowBank’s remaining assets, including the LCG/FlowBank operation, to repay all creditors.
Due to the appointment of liquidators at parent FlowBank, LCG Bahamas/FlowBroker has found it impossible to continue its operations.
