In a further sign of what impacts Brexit is having on financial service providers with no passporting rights left in place since the divorce of the UK and EU on December 31st, IG Group’s UK entity has informed its European clients that they must migrate their accounts to IG Europe in order to continue trading.
In a blog post on its website, the broker indicated that customers have to agree to transfer their accounts by January 8th, 2021, and provide KYC documents in order to confirm their identity and continue trading in a European domiciled account. At the same time, the broker is promising to re-establish any open traders or orders in the customers’ new accounts if they agree to the transfer.
Since client funds will be held in accordance with “BaFin’s client money rules” customers accounts are expected to be regulated by the German financial regulator and there is no word yet on any impacts to leverage, commissions, or other trade settings provided to customers when they were trading via the UK. Given that no passporting rights between the UK and EU exist at the moment, we expect more UK domiciled brokers to announce migrations of customers back to mainland Europe.
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