Spread betting today: WorldSpreads clients get closer to compensation, IG Group director snaps up shares

Written by Gary Howes Tuesday, 03 April 2012 11:51

Comparing Spread Betting: Clients of troubled spreadbetting firm Worldspreads have moved a step closer to getting funds back through the Financial Services Compensation Scheme (FSCS) after administrators KPMG began sending out final statements.

Jane Moriarty, special administrator of Worldspreads and restructuring partner at KPMG, said: "While the sudden collapse of Worldspreads has understandably caused a great deal of distress for the company's clients, the issuing of all final client statements today is an important milestone in returning funds to clients.

"We will now be able to start agreeing the statements with clients. The next stage in the process will be the creditors' meeting which will be held within the next eight weeks, in line with our statutory responsibilities."

The FSCS said it would "shortly" outline the process it will use in paying out compensation, adding clients did not need to contact the organisation.

Elsewhere, Stephen Hill, a Non-Executive Director of IG Group Holdings, the FTSE 250 spread-betting firm, has purchased 111,736 shares.

Hill, who worked as the CEO of the Financial Times for Pearson between 1996 and 2002, bought the shares at 444.15p each for a total of £496,275.

The purchase comes just a fortnight after the group admitted it has experienced a significant slowdown in sales growth during the third quarter, after the previous market volatility that had helped sales in the first half was alleviated.

In the three months to February 29th, revenue increased by just 1.5% year-on-year to £75m. In the first six months of the fiscal year, net trading revenue surged 27.8% to £195.46m.

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