Shares in Plus500 (LON:PLUS) dropped by another quarter today, prompting the spread betting provider to update investors on its anti-money laundering talks with regulators.
The foreign exchange firm has seen its market value tank this week after the Financial Conduct Authority ordered some of its UK client accounts to be frozen.
On Monday, PLUS500 said the FCA’s anti-money laundering review and suspension order was merely a temporary procedural setback, affecting a subset of accounts representing no more than 50% of revenues.
Shares plunged again today before being temporarily suspended. The company then told investors that plans to get the accounts back up and running were being put in place, with 40 staff working on this process over the coming weeks.
In the meantime, its UK operation will continue to re-approve existing clients who have provided the appropriate documentation.
However, the unit remains unable to on-board (take on) new customers, although it expects to be in a position to do so within the next few days.
The company said it can still sign up new customers (including new UK customers) through its regulated Cypriot subsidiary, Plus500CY and Australian customers through its ASIC regulated subsidiary, Plus500AU.
PLUS500 was worth around £700mln at the start of the week, but its market cap has dropped below £300mln.
Shares have fallen from 743p to 231p since Monday. Trading in the shares recommended at 1pm on Friday.