WorldSpreads

About WorldSpreads

WorldSpreads, a spread betting company, collapsed in March 2012. The company had 29.7 million in client money but owed 31.8 million to clients, a shortfall of 2.1 million. CEO Conor Foley resigned. The company had reported false revenue figures and concealed losses. The UK Financial Services Authority investigation found that WorldSpreads had manipulated client accounts to inflate revenue. Clients lost approximately 16 million. The case highlighted the risks of spread betting and the importance of client money segregation. The WorldSpreads collapse, along with other failures, contributed to reforms in client money protection rules. Several former executives were banned from the financial industry.