London Capital Group – bad news comes in threes!
London Capital Group (‘LCG’) has announced that Paddy Power, a substantial white label customer, is currently reviewing their financial spread betting business Paddypowertrader.
In the case of a white label agreement the underlying client is a client of LCG and LCG pays the white label partner for its client acquisition activities. Paddypowertrader currently represents 17% of active clients of LCG – so it represents a significant element of the business! In the event that Paddy Power withdraw from financial spread betting, LCG would work with Paddy Power to determine the process to assist clients currently on Paddypowertrader to continue trading as direct clients of LCG.
Following recent announcements from LCG you could say the writing was on the wall!