London Capital Group Ownership Transferred to Executives Following FlowBank Collapse

Ownership Transfer to LCG Executives

On Wednesday, Companies House records confirmed that Charles Sabet has sold his remaining shares in London Capital Group (LCG). The ownership has now been transferred to two senior executives: Matthew Basi, who serves as Managing Director, and David Worsfold, the Chief Executive. The transfer was executed through a newly created holding company named MBDW Holdings, a name that reflects the initials of Basi and Worsfold. While the transaction value was not disclosed in the filings, the change marks a significant shift in control of the FCA‑regulated entity.

Historical Restructuring of LCG

LCG’s corporate journey has been marked by several restructurings. In 2018, the company was part of London Capital Group Holdings, which faced difficulties after being delisted from both the London Stock Exchange and NEX Exchange. That same year, Sabet, then CEO, purchased LCG to separate it from its troubled parent, which subsequently entered liquidation.

In 2020, Sabet launched a Swiss bank called FlowBank. FlowBank later became the parent of LCG, linking the broker’s operations to a Swiss financial institution. However, the collapse of FlowBank in 2023 disrupted this relationship and prompted a series of regulatory actions.

Regulatory Impact of FlowBank’s Collapse

Following FlowBank’s bankruptcy, the FCA imposed a set of restrictions on LCG’s UK entity. These limitations barred the broker from onboarding new clients, accepting new client money, and conducting certain regulated activities. The restrictions were lifted shortly thereafter, as regulators determined that LCG’s UK operations functioned independently of the failed Swiss parent.

Outside the United Kingdom, the LCG brand was also operated by a Bahamas‑regulated entity. This overseas arm ceased operations after FlowBank’s failure. Unlike the FCA‑regulated UK company, the Bahamas entity was closely tied to FlowBank, maintaining accounts and funds at FlowBank SA. The insolvency of FlowBank rendered the Bahamas operations unviable.

Shift to an Introducing‑Broker Model

In 2023, LCG altered its business model and became an exclusive introducing broker for IG Group, a company that had previously been a local rival. This strategic pivot reflects the firm’s adaptation to a changing market environment and its efforts to maintain a compliant and focused brokerage service.

Current Ownership Structure

Under MBDW Holdings, Basi and Worsfold now own the FCA‑regulated LCG. The holding company’s ownership is solely held by the two executives, ensuring that the broker’s operations remain under the direct control of its senior leadership.

Outlook for LCG

With the ownership transition and the removal of FCA restrictions, LCG is positioned to continue its role as an introducing broker for IG Group. The company’s ability to navigate regulatory environments and adapt its business model will be crucial as it seeks to rebuild confidence among traders following the FlowBank episode.

The market will be watching closely to see how the new leadership steers the firm’s growth and whether it can sustain its brand reputation in the wake of recent upheavals.