which runs online and telephone trading services, was placed into
administration over the weekend after 'accounting irregularities' were
Customers of a spread
betting firm are likely to be left seeking compensation after administrators
discovered a £13m black hole in its accounts.
runs online and telephone trading services, was placed into administration over
the weekend after "accounting irregularities" were found.
Administrators at KPMG said the group's 15,000 customers were owed
£29.7m but the group has only £16.6m of cash, leaving them facing a
However, customers may be reimbursed up to
£50,000 by the industry's Financial Services Compensation Scheme,
depending on their circumstances.
On Wednesday, chief executive and co-founder Conor Foley resigned,
two weeks after chief financial officer Niall O'Kelly stepped down following a
Its shares were suspended from trading on the
Alternative Investment Market on Friday.
Redundancies among the firm's
66 staff - most of whom are based in London - are likely as administrators wind
down the business. WorldSpreads is based in London and its parent company is in
The Financial Times reported that WorldSpreads mixed money from
customers' accounts, which should have been segregated, with its own funds.
The industry's compensation scheme pays up to £50,000, mainly for
individuals and small firms. But some of its clients, including other spread
betting firms, are believed to be owed larger sums, raising the prospect of a
lengthy legal struggle.
The Financial Services Authority said: "Clients
should be aware that any shortfall in the client money accounts will impact the
amount of money that can be returned."
appointed to Worldspreads Limited
Upon the application of the directors
of Worldspreads Limited, on 18 March 2012, the High Court appointed Jane
Moriarty and Samantha Bewick of KPMG LLP as joint special administrators of
Worldspreads Limited, under the Special Administration Regime (SAR).
Worldspreads Limited is a wholly owned subsidiary of Worldspreads plc, a
company incorporated in Dublin, Ireland.
The administration of
Worldspreads Limited follows the discovery of accounting irregularities which
the company became aware of during the course of Friday 16 March 2012.
Following this it quickly became apparent that there was a shortfall in client
monies and the directors and their advisors concluded that the best course of
action, in order to mitigate losses for clients, would be to place the company
into special administration.
For all non-press queries about
Worldspreads Limited, please contact: 020 3284 8829