FlowBank Liquidators Seek Buyer for LCG UK

The liquidators managing the bankruptcy of FlowBank have announced their intention to sell the entirety of London Capital Group's (LCG) UK unit while planning to cease operations for LCG in the Bahamas.

Walder Wyss Ltd, the appointed liquidators, stated, "In respect of LCG UK, the liquidators are currently seeking a potential purchaser who would be interested in acquiring all the shares in LCG," and added that "in respect of LCG Bahamas, the liquidators wish to discontinue the operation of LCG Bahamas."

FlowBank, which was based in Geneva and operated as an online brokerage, had its operational license revoked by Switzerland's Financial Market Supervisory Authority (FINMA) on June 13, 2024​.

The decision followed a lengthy period of scrutiny that began in October 2021 over breaches of supervisory laws, particularly related to capital requirements, organizational adequacy, and risk management. Despite the appointment of an external auditor in October 2022, FlowBank was found to be in continued violation of capital ratio requirements and other operational deficiencies.

As part of the bankruptcy proceedings, FlowBank had approximately 9,000 accounts with secured deposits amounting to about CHF 53.5 million. The liquidators have managed to repay around 5,800 accounts, totaling approximately CHF 45 million by the end of last week, which represents about 84 percent of the total secured deposits.

For CFD accounts, the liquidators clarified that "the CFD Account is a separate account containing any gains or losses resulting from the closure of clients' CFD positions following the opening of the bankruptcy," noting that "any positive balance credited to the CFD Account does not constitute a secured deposit" and only "represents an ordinary debt of the bankrupt estate."