Plus500 clients begin to reactivate accounts
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More than 20 per cent of clients at Plus500 have reactivated their accounts after the troubled contracts for difference (CFD) trading platform last month froze all accounts pending a regulatory inquiry.
The Israel-based company, which this month was the target of an agreed £460m cash offer from gambling software company Playtech, said that about 23,000 customers had logged into their accounts since May 18.
That was when Plus500 froze activity on existing customer accounts after the UK’s Financial Conduct Authority ordered a review of its anti-money laundering (AML) procedures.
Plus500 had a total of 105,000 what it calls “active” customers in 2014.
Of the 23,000 who had logged back on, 10,147 had completed “remedial AML procedures”, the company said in an update on Tuesday.
A further 8,457 accounts had been fully reviewed by a remediation team and had been unfrozen, allowing customers to trade normally again.
“While it is too early to anticipate the ongoing behaviour of those customers who are now free to trade, 5,205 have resumed trading (61 per cent) and 457 (5 per cent) have cashed out all their funds,” Plus500 said.
Accounts at Plus500 cannot be considered unfrozen until clients have taken steps to log back on.
Plus500 had started getting in touch with inactive customers encouraging them to submit documentation that would allow them to be cleared to trade when they next wished to, the company said.
Shares in Plus500, which is London-listed, were fractionally lower at 370p as investors continue to assess how the company will emerge from the AML investigation.
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