FxPro agrees to sell Cyprus client book to Capital.com, pending regulatory approval

London, United Kingdom. FxPro has agreed to transfer the client book of its Cyprus entity to Capital.com, according to online financial markets publication Finance Magnates. Approval for the transaction remains pending with the Cyprus Securities and Exchange Commission (CySEC).

Focus on international growth

Finance Magnates reported that the proposed sale is intended to bring FxPro’s business structure into line with its long-term expansion plans. The group indicated that Cyprus represents a comparatively small share of its overall operations.

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FxPro chief operating officer Peter Aust told the publication that markets beyond Europe had accounted for most of the group’s expansion in recent years and had become its principal sources of growth.

Aust said FxPro would direct investment, resources and innovation towards those international markets without changing its ownership, leadership or wider strategy. He described the proposed transfer as a streamlining of activities that no longer fitted the group’s growth profile, rather than a broader withdrawal from the market.

FxPro obtained its Cyprus Investment Firm licence in 2007. It also holds regulatory licences in the United Kingdom, the Bahamas and the Seychelles.

The company said it would keep its UK Financial Conduct Authority licence and its headquarters in the City of London, reaffirming its commitment to the British financial centre.

Capital.com to apply its own client checks

Capital.com said only clients satisfying its risk and onboarding requirements would be eligible for transfer. It said those clients would undergo its own procedures for client categorisation, appropriateness, target-market assessment and know-your-customer checks.

The planned deal comes after Capital.com introduced direct investment in stocks and exchange-traded funds across European markets in September, extending its services beyond short-term trading.