Forex brokerage Ikon Finance has decided to exit the retail forex market and has been transferring its clients to peer Hantec Markets, online media LeapRate reported, citing company information. The move follows a regulatory restrictions by the UK Finance Conduct Authority (FCA).
“Ikon Finance is undergoing some changes to our business, where we will be looking to focus more on our quality institutional services. Due to these changes we will be migrating our business to Hantec Markets Ltd. which is authorized and regulated by the Financial Conduct Authority (FCA Register No: FRN 502635.). Hantec Markets is a reliable partner who IKON Finance has had a relationship with for many years in its institutional capacity,” a company representative told LeapRate.
The UK regulator has required Ikon Finance to either ensure client positions are closed by the end of the trading day on Thursday and refund their balances, or transfer client funds to another FCA licensed broker. Both Ikon Finance and Hantec Markets are regulated by the FCA.
As a result of the imposed restrictions, Ikon Finance has stopped taking new retail clients. However, the broker will continue to service institutional customers, the media said. The broker’s license has not been suspended, although it has been “closed to new business” by the FCA.
Meanwhile, another media, Finance Magnates, cited an Ikon Markets spokesperson as saying that the company is working on resolving the issues and resuming normal business activities.
“Ikon Finance Ltd has voluntarily agreed with the FCA to undergo certain requirements which we will be fulfilled shortly,” the spokesperson said. “It is very important to note that customer funds were not affected in any way during this process and we are excited in continuing our business shortly.”
Hantec Markets is the UK-based unit of the Hantec Group. The group also has an Australian subsidiary, which is licensed by ASIC and operates under the tradename Hantec Markets Australia (HMA). The mother company Hantec Pacific Ltd. is a multinational finance house based in Hong Kong.