LeapRate has been informed that Plus500 Ltd (LON:PLUS) has begun a process of transferring clients which were customers of the firm’s Financial Conduct Authority (FCA) regulated London operations to a separate division of the company, namely the firm’s Cyprus division, regulated by CySec.
Following the issues which have been experienced by Plus500 recently, which resulted in a substantial decrease in the share price following an account freeze and difficulties processing client documentation, the firm has issued a letter to one of its clients which had initially opened an account under the FCA regulated London office, informing the client that his trading account has been transferred to Plus500’s CySec regulated division in Limassol, Cyprus.
The letter reads as follows:
I would like to inform you that you are being contacted by the Complaints Team.
Reut has indeed called you a few times, however there was no answer. Therefore, I would like to provide you with our full answer on this matter.
Kindly bear in mind that up till 18.05.15 your trading account was under the FCA UK regulation. According to the regulator’s requirements your account was undergoing a review according to their new guidelines.
In this review, we had to reject the approval of your residence verification document which was previously approved since he does not meet the new and updated requirements.
On 18.05.15, your trading account moved to being regulated by the Cyprus Securities and Exchange Commission along with many of our customers. This action was made due to internal company decisions.
I would like to emphasize that unfortunately you are still required to provide us with a residence verification document which meets the following requirements:
– bears your full name and address
– dated in the past 6 months
– is issued by a government agency, judicial authority, public sector body, or a regulated financial or utility company.
Examples include: court summons, tax demand/letter, bank or credit card statement or letter from such a financial institution, a utility bill, etc.
Hopefully, I have clarified any unresolved matters you may have had regarding our platform and your trading on it. However, if you still wish to complain, please see attached our Dispute and Complaints Policy.
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