UK Regulator Fines FXCM £4M For Withholding Profits

Law360, New York (February 26, 2014, 5:51 PM EST) -- Two U.K. subsidiaries of foreign exchange trading firm FXCM Inc. were fined £4 million ($6.67 million) by the Financial Conduct Authority for withholding millions in earnings from investors, the U.K. financial regulator said Wednesday.

According to the FCA, Forex Capital Markets Ltd. and FXCM Securities Ltd. withheld roughly £6 million from clients through a U.S.-based subsidiary between 2006 and 2010 by placing over-the-counter foreign exchange transactions on behalf of retail clients and keeping favorable market movements between the times the orders were placed and executed while...
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