FNG Exclusive… FNG has learned that the claims of misappropriating funds from the company made by global Retail FX and CFDs broker EBC Financial against its former UK Director are significantly larger than initially reported.

EBC UK write-offs

We had reported last month that EBC UK had taken a write-off of £747,000 (just under USD $1 million) in its 2023 fiscal year, accusing a former Director of taking the funds. While EBC did not name the Director, several weeks prior longtime EBC UK CEO and Director David Barrett left the company. And, David Barrett was (at the time) the only former Director of EBC UK.

Now, FNG has learned via further regulatory filings made by the company relating to its 2024 and 2025 fiscal years, that further write-offs have been taken around the episode. In its 2024 financials EBC UK included a £717,500 exceptional item. And in 2025 an additional £1,191,500. In total, the write-offs now come to £2,656,000, or about $3.5 million.

And it is possible that EBC UK’s fiscal 2026 financials could include further write-offs related to the misappropriated funds, once those financials are finalized after year-end (i.e. September 30, 2026).

The EBC organization put additional £3.8 million of equity into EBC UK in April 2026, shoring up EBC UK’s capital base.

EBC UK hires

EBC clearly has big plans for its FCA licensed UK arm. Following the departure of Mr. Barrett, as noted above, EBC has recently hired Evolution Markets’ Rudy Rehal, and Pepperstone executive Zack Ioannou to head and build out its UK operation, as was also exclusively reported here at FNG earlier this month.

Back to the misappropriated funds, EBC continues to report that the matter is currently under investigation by the authorities, whilst the company is considering its legal options.

Company statement

FNG spoke to representatives of EBC Financial Group about the matter, who provided the following statement.

This matter relates solely to operational funds belonging to EBC Financial Group (UK) Limited. No client funds were involved or affected at any stage, and all client assets remain securely segregated and protected in accordance with applicable regulatory requirements.

As the matter is currently under investigation by the relevant regulatory and law enforcement authorities in the United Kingdom, the company is unable to comment further at this time. EBC Financial Group is cooperating fully with that process.

Since identifying this issue, EBC Financial Group has taken concrete steps to strengthen governance and financial oversight at the UK entity, including reinforcing internal controls, financial reporting and approval processes. The Group has also increased the UK entity’s capital base, having injected GBP3.8 million three months ago. EBC Financial Group (UK) Limited continues to operate normally, and we remain committed to the highest standards of financial integrity and client protection.