IG Group withdraws from binary betting
Pre-tax profits rose by 6.7% to £105.2m at spread betting firm IG Group Holdings (LSE: IGG) during the six months to 30 November. The group’s earnings per share rose by 7.8 to 22.55p, while new client numbers were ahead of the prior year by 59%.
The firm also announced a number of measures aimed at addressing UK regulatory plans to limit the amount of leverage available to retail investors. IG will reduce the range of binary options available to new clients and accelerate the rollout of its Limited Risk account, which prevents clients from losing more than their deposit.
IG rightly sees itself as a cut above some of the overseas-based firms which compete in this sector. The group was keen to emphasise its sophistication today, flagging up the ongoing expansion of its stockbroking service and a move into discretionary investment management.
The firm said that in the medium term, regulatory restrictions to protect inexperienced investors often lead to improved client outcomes and benefits for compliant providers. However, this doesn’t mean that the group won’t be affected by the FCA’s planned new restrictions.