On the grounds of regulatory restrictions, imposed on IKON by the FCA, the company is not willing to accept new clients. IKON has been instructed by the FCA that by the end of March 30, the company must ensure that all open client positions are fully closed out such that each client account is left with a cash balance in the client’s base currency.
Following this, IKON must then immediately either refund the cash balance, or transfer the client funds to another FCA licensed broker. As it was reported by leaprate, IKON is moving its retail portfolio of clients to Hantec Markets.
The FCA informed that IKON has inappropriate human and operational resources in place, without any adequate governance and oversight of all functions. Another arguments were insufficient anti-money laundering program and controls implemented, together with the need of the company to verify customers through implemented due diligence system, in accordance with the Money Laundering Regulations 2007.
Nevertheless, IKON’s FCA license has not been formally suspended. The regulator has just imposed the restrictions on opening any new client accounts, or doing any trades for clients other than closing trades, until the aforementioned issues are resolved.
As widely known, the company is under control of a Turkish businessman Engin Yikilmazoglu. The broker used to have operations around the world, including an NFA-licensed subsidiary in the US called IKON Global Markets. The company exited the US retail forex market earlier this decade when US regulators tightened capital requirements and other rules around retail forex trading.
The message IKON has sent out regarding new account inquiries reads as follows:
Thanks for your interest in IKON Finance!
We are now transferring our client accounts to Hantec Markets, which is also an FCA regulated broker located in London, UK. Please visit their website for more information: https://www.hantecfx.com/
In order to make a new application at Hantec Markets, please go to the link below and complete your online application:
Please let us know if you need any more help/information.
For any questions or recommendations, feel free to write us on hello@goforex.eu
