IG chief steps down as pressure mounts over regulatory clampdown
Shares in IG Group fell more than 11 percent on Thursday after the online trader said Chief Executive Peter Hetherington would step down, a departure that will increase uncertainty for the company amid a regulatory clampdown on spread-betting.
IG and its rivals, such as CMC Markets, have faced tighter regulations on their products, which allowed anyone with a bank card to make highly-leveraged bets on financial markets via apps and online platforms.
Last week, IG said the tighter regulations and a dip in market volatility led revenue for its latest quarter to fall 4.7 percent.
IG did not give a reason for Hetherington’s departure but said it was “well advanced” in its search for a new chief executive. It has appointed Paul Mainwaring, IG’s finance chief, as interim CEO.