UK financial regulator The FCA has announced that FX and CFDs broker City Credit Capital (UK) Ltd has been placed in administration.

The administration and shutdown order also applies to the company’s “downmarket” brand CIX Markets, which operated at website cixmarkets.com.

City Credit Capital and CIX Markets are controlled by US entrepreneur Alfred Tang. The company had seen a significant downturn in activity over the past few years. In 2021 (the company has yet to release 2022 results) CCCUK did just £1.2 million in Revenues, posting a £3.8 million loss. As recently as 2017 CCCUK posted Revenues of £13.6 million, turning a tidy £725K profit.

At last report (end of 2021) CCCUK / CIX Markets held £3.5 million in client funds.

The FCA stated that on 30 June 2023, Gary Paul Shankland and Jamie Taylor of Begbies Traynor (Central) LLP and Christopher Andersen of AABRS Limited were appointed as Joint Administrators of CCCUK, following an application by CCCUK’s directors. CCCUK is a firm that provides Contracts for Difference for retail and professional clients. CCCUK was first authorised by the FCA in 2004.

On 20 June 2023, the FCA stated that it took action to prevent CCCUK from carrying on any regulated activities by placing restrictions on its permissions. CCCUK was also required to preserve its client money, and place a notice on its website informing clients that it was no longer permitted to conduct regulated activities and that all client positions would be closed.

The Joint Administrators are responsible for managing claims against CCCUK and returning funds to customers where possible. Customers of CCCUK and CIX Markets should receive more information from them shortly, including details on how to make a claim.

Following CCCUK’s entry into administration, the client monies held by CCCUK are now frozen and form part of a client money pool. It is not possible for CCCUK clients to close their accounts with the company or withdraw client monies. The intended process for the distribution of client monies via the administration process, as described.

Moving forward, the Joint Administrators noted that it is their intention to submit an application to the Court for the approval of a distribution plan. The distribution plan will provide for the distribution of the client monies held by CCCUK. In accordance with the FCA’s client money rules, the Administrators are entitled to deduct from the client monies their reasonable costs and expenses incurred in dealing with the distribution of the client monies.