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Screenshot of a breaking news alert e-mail from Q2 2017
LeapRate Exclusive… LeapRate has learned via regulatory filings that Warsaw based Retail FX brokerage group X Trade Brokers Dom Maklerski SA (WSE:XTB), which operates the XTB.com brand as well as the X Open Hub trading platform, has seen its longtime Head of Legal Paweł Frańczak resign from his position.
Mr. Frańczak has also stepped down from the XTB Management Board. He is being replaced on the Board by Jakub Kubacki, now Head of Legal and Compliance at XTB.
A lawyer by training, Paweł Frańczak had been at XTB for more than 10 years, beginning in 2007 at Chief Compliance Officer. He has been a Member of the Management Board and Head of Legal for the XTB group since 2012. He was also a board member of XTB’s FCA regulated subsidiary in the UK from 2011-2014, and was responsible for setting up the FCA regulated entity and overseeing the UK compliance officer and MLRO officer, as well as the firm’s marketing compliance.
The formal reason given in the filing for Mr. Frańczak’s resignation was (translated form the original Polish) his “desire to continue professional development within the framework of an attorney’s practice”.
However his resignation comes at a curious time for XTB, which is facing a continued investigation by Poland financial regulator KNF and Polish state prosecutors amid claims from one of the company’s former large clients that XTB has engaged in fraudulent practices including asymmetric slippage. XTB has countered with its own claims that it is being blackmailed by the client, and that it has done nothing wrong.
XTB, meanwhile, recently reported its best quarter ever, with Q1-2018 Revenues of $33 million and Net Profit of more than $17 million.
Pawel Frańczak commented on his departure from XTB:
It was a great period in my professional career and I had the opportunity to gain unique experience and build the first Polish truly international investment company physically present in 12 foreign markets. For some time I have been thinking about starting my own legal practice where I can put my experience and skills into broader use. I leave XTB in great shape, as the last quarter results show, and in a strong position to capitalise on the forthcoming European regulatory changes. I have no doubt that XTB will continue to grow to become one of the largest multi-asset brokers in the world and I look forward to watching that happen from the sidelines.
XTB CEO Omar Arnaout said:
On behalf of everyone at XTB, I would like to thank Pawel for his long service and dedication over more than 10 years. Pawel has played a pivotal role in helping XTB to become the dominant European broker it is today. We wish him all the best with his future endeavours.
Mr. Frańczak stated, however, that he does not plan to part ways with the capital market. After leaving XTB, he said he plans to join as a lawyer and partner managing corporate practice of a law firm together with attorney Piotr Stocki, who specializes in the field of court disputes, especially commercial and white-collar crimers disputes. The Law Firm offers innovative approach to the the tactics of litigation in commercial cases. Frańczak said he will develop a new department servicing legal, regulatory and corporate clients, capital and financial market companies, especially in the undervalued area of compliance, fintech and the law of new technologies.