UK CFDs Broker City Credit Capital Goes Bankrupt, Enters Administration

<p>City Credit
Capital (UK) Limited (CCCUK), a forex and contracts for
difference (CFDs) brand that
has been in the industry for nearly two decades, has become insolvent. The
Financial Conduct Authority (FCA) disclosed today (Tuesday) that the brokerage
has entered bankruptcy administration. </p><p>CCCUK
Becomes Insolvent</p><p>FCA in <a href="https://www.fca.org.uk/news/news-stories/city-credit-capital-uk-ltd-cccuk-enters-administration" target="_blank" rel="follow">a
statement</a> noted that it appointed insolvency advisory firms Begbies Traynor
(Central) LLP and AABRS Limited as joint administrators of CCCUK on Friday. The process is to be led by Gary Paul Shankland and Jamie Taylor from the first
firm and Christopher Andersen from the second.</p><p>The
watchdog said the move follows an application for administration by the
directors of CCCUK. FCA register shows CCCUK was led by Raymond Yip as the
Chief Executive Officer.</p><p>However,
FCA in its statement did not state why CCCUK went bankrupt. This is even as the
watchdog’s register shows that the company, which provided online dealing
services to private investors, institutions, banks and brokerages, applied to
cancel its authorization. The register also notes that CCCUK operated under the
trading names, CIX Markets and Markets Trader.</p><p>“The Joint
Administrators are responsible for managing claims against CCCUK and returning
funds to customers where possible,” FCA stated
in the statement.
“Customers should receive more information from them shortly, including details
on how to make a claim.”</p><p>CCCUK in its financial report for the year ended December 2021 reported a
41% decrease in margin-in compared to its performance in the previous fiscal year. Margin-in
is a metric that measures a company's profitability by calculating the
difference between the price at which a product is sold and the cost of production.</p><p>“The Group
recorded a loss in the year ended 31 December 2021 during which time the global
economy has suffered as a result of the Covid-19 pandemic coupled with various
government strategies to manage it,” Yip explained in <a href="https://s3.eu-west-2.amazonaws.com/document-api-images-live.ch.gov.uk/docs/quG2cVFoLYoDyIqDmbGH38tW-dpCIiKHKBVUadmnd1Y/application-pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&amp;X-Amz-Credential=ASIAWRGBDBV3BXVIXEC2%2F20230704%2Feu-west-2%2Fs3%2Faws4_request&amp;X-Amz-Date=20230704T163019Z&amp;X-Amz-Expires=60&amp;X-Amz-Security-Token=IQoJb3JpZ2luX2VjEKD%2F%2F%2F%2F%2F%2F%2F%2F%2F%2FwEaCWV1LXdlc3QtMiJHMEUCIQDXU4xzXYPMiTawB13pr4ct0jU5f46fv3PFueXQgD84BwIgens%2FcY%2FT05lfR4blKiAgArp5tJlZw2j4DhHp97D1nhkquwUIGBAEGgw0NDkyMjkwMzI4MjIiDIPk8gJ%2BmZux6czshiqYBVXeUatlQc9kzx87TVYho1vW4PjimlqZiUnjQUiRp1KoWdAO7J9YKIhbXqhqQqCq5vPCmuUcjfgHTgTyr%2B308zkN0blt%2BJ%2BApsEv1llhEDU1TkpORYnUYKO%2FzSggL2wW4XLDbdbtRKisWyko%2FgOvM5rVLn5SzD00C5LzUu6QBTwxpM3utDNnuvzA785QwjRWMnk2XeORR8wU%2BCwKeQm%2Bgcf5O%2FHmgscKEP1BaIFIWDtKTZX5WvsKHX6UmFz9%2F5kcq8Eamz3ho3YoRUq2hpnJ3aeqn%2BKW1f86tuhmisXF2nSj%2BAG2h1R37yJyrAtmwlzQjkVnQEo0T8cq5%2BxWB8%2BAz%2F0qn73dYMfc6fFBlbsgWy%2F3kgb8MQqwrzXZ2qzIpkBi3fGFXHo7elPwDUKemke3cE%2BYj7brmstCCQZGtuYpyoWCBVnJR9Sf3dV6vdxB0mIzA8d0mN4VrDOCW151dMIpzk9ASWUhzHQtOnVYtEYXG0FqNy3bkWkn0uwog4OFC91c%2BExoV21KkmZNFKVtwxyFcFhmUjhaDufgCM9UCPHzeX9jK1Z9BmIp3GZElNXBKVK7RLjkh3If3BcTQOJugbFUMnuBeosUI%2B%2Bp3KLr2DHeGihOEBPEEhquPTKtr3D%2BuP5VPGPDADSTJvI1ajqI4I8%2FWDms7t8ysTh0LgTELOYrT8OWB5QQLmrqIDF6vRFr7RgkryYyOWS6FJcldGdBnUo5QLc26r9qi6JhpG9fYGE1AHmBNlYWz9OEU5vXpmFHUvIR556SaXx9KEpYBAkMpAFd%2BMlL6Z7DuejiEaOYuDfqq1oQyT5OgTKBte%2FEo00BQ2ubal9Ha787vxXF8mgSMhpvPusPyH8Hz9sKiy%2BgBl59jwhwDj1dX2JnGbMwhe%2BQpQY6sQG6bYtJuU2acQRvrc7jDyTy5T5J4EjK0NOs%2FUI1DW54zU7MnKXxX7mcHHR4LnQnuJU7IIUdtEPs5QFpY624jbFRy6QdWXBh0uXHKsLAX1CIAFGaReUI%2B4qjJZlA5KbZGy6ugyoYE5UjRRKcbemC1iQhQDtUwoRWtDmriYxmqA7B0Kn9WDk6vIeVV8MOYXUuSYb2145qF6avRYFklLMegLxbsqEKQ12uso9ZgzUnkFay1Vk%3D&amp;X-Amz-SignedHeaders=host&amp;response-content-disposition=inline%3Bfilename%3D%22companies_house_document.pdf%22&amp;X-Amz-Signature=dc9af7f84a52bf4a7b54e3d9a58fe8a4e47381ba55bd83817efd28c49ce3710b" target="_blank" rel="follow">the company’s financial
report</a> filed with the UK Companies House in September last year. “Should losses continue to be made
without additional capital being provided, the company may breach the
regulatory capital resources requirement which in turn may lead to supervisory
action by the Financial Conduct Authority.”</p><p>CCCUK
Ceases Trading </p><p>The launch
of the <a href="https://www.financemagnates.com/terms/b/bankruptcy/">bankruptcy</a> administration comes as FCA on June 20th, 2023, placed
restrictions on the CCCUK's permissions to prevent it from carrying
out any regulated activities. The financial markets
supervisor also
demanded that the firm preserve its clients' money. In
addition, FCA ordered
the firm to place a notice on its website informing clients that it was no
longer permitted to conduct regulated activities and that all client positions will be
closed. </p><p>A check by <a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a> shows the firm’s website now runs a message that says CCCUK
“has ceased to trade.” In one of the frequently
asked questions (FAQS) on its
website, CCCUK wrote that the joint administrators are required to submit
in eight weeks’ time proposals
detailing, among other things, expected returns to creditors and the reason the firm entered into administration.</p><p>CCCUK was
incorporated on December 19, 2001, as Smart Link Financial Services (UK)
Limited. However, the firm stopped using the name in October 2002, according to details on the UK
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This article was written by Solomon Oladipupo at www.financemagnates.com.