FCA fines forex business £4m for making 'unfair profits'

The Financial Conduct Authority (FCA) has fined Forex Capital Markets and FXCM Securities (FXCM UK) £4m for allowing the US-based FXCM Group to withhold profits worth £6m that should have been passed on to the UK business' clients.

FXCM UK also failed to tell the FCA that the US authorities were investigating another part of the FXCM Group for the same misconduct, the regulator said. The FCA has now ensured that FXCM UK's clients will be fully compensated and credit automatically paid to their accounts. FCA director of markets David Lawton said the practice undermined confidence in the integrity of the foreign exchange markets. "The FCA will use all the tools at its disposal - supervision, rule-making and enforcement - to ensure that firms do not exploit conflicts of interest or the trust placed in them by th...