JP Markets’ clients have been hit hard when FSCA suspended all the broker’s activities, including freezing their accounts. Due to the suspension, existing clients will not be able to withdraw or deposit funds into their accounts. It gets bad, traders won’t be able to trade as all the JP Markets trading platforms have been paused due to frozen accounts.
The broker took to Instagram and released a statement regarding the situation at hand. JP Markets announced an update regarding the provisional suspension of the FSP licence.
‘We have been working around the clock with our legal and compliance team to navigate this difficult period’
JP Markets confirmed they have filed an opposing application and that the matter is set down for argument on 21 July 2020 in the Johannesburg High Court.
“In the intervening period, our access to banking facilities has been restricted and we are not able to pay any client withdrawals as a direct result thereof.”
“We have no other option but to place a hold on all deposits and withdrawals with immediate effect. This will impact all clients negatively as all open positions will need to be closed”
Will this matter be solved? Well, when the Licence was provisionally suspended the JP Markets CEO, Justin Paulsen was confident that the decision was going to be overturned. At this point, it is very hard to tell.
“We acknowledge that these are temporary measures put in place by the FSCA, however, the detrimental effects of said measures will no doubt have lasting effects on our business operations, we will continue to keep all clients updated and any further developments will be published timeously.” JP Markets concluded.
South African COVID-19 Information Portal
iBusiness on COVID-19