ICM Capital has applied to FCA for license revocation
ICM Capital has applied to FCA for license revocation
ICM Capital Ltd., a Forex and CFD brokerage firm operating under a license from the Financial Conduct Authority (FCA), has applied to the regulator for its license to be revoked.
ICM.com's UK subsidiary, ICM Capital Limited, is facing financial problems and has yet to publish its 2023 accounts, the FNG said.
The regulator posted a notice on its website that ICM Capital plans to cease operations in the UK. However, the Financial Conduct Authority said ICM "must continue to meet our standards in its dealings with its clients".
ICM Capital Limited, which has been authorized by the FCA since 2010, reported a net loss of £1 million in 2022, with virtually no income. This is a significant drop from the firm's performance in previous years. In comparison, the company's revenue in 2017 was £14.4 million. The company has seen a reduction in client funds to £530,791 at the end of 2022. Meanwhile, the figure was £6.09 million in 2020 and £4.27 million in 2024.
These results reflect the extent of ICM Capital's financial problems. ICM.com had previously shifted its focus from retail clients to professional clients, but the move does not appear to have made a significant difference to its financial position.
The broker is controlled by founder and CEO Shoaib Abedi through the Luxembourg-based holding company ICM Holding SARL and also operates other licensed subsidiaries in the United Arab Emirates, South Africa, and Switzerland. It also has offshore structures in Mauritius, Labuan, and St. Vincent and the Grenadines.
As a result of the FCA's revocation of the company's license, ICM Capital Limited will be required to continue to meet the regulator's standards of client care throughout the revocation process. The implications of this decision are significant, as it reflects wider issues within the firm and raises questions about its operational focus and financial health going forward.
