A receiver has been appointed to the Irish-based financial spread betting company WorldSpreads Group , following the appointment of administrators to its main business last week.
Trading in the company's shares was suspended last week, and a statement from WorldSpreads today said it was not anticipated that there would be any return to its shareholders following the receiver's appointment.
Earlier this week, sources confirmed to RTÉ that the City of London Police was being asked by Britain's Financial Services Authority to investigate alleged financial irregularities at WorldSpreads.
WorldSpreads Limited entered administration last weekend following suspected misuse of client funds. KPMG has been appointed as administrator and has warned there is likely to be a shortfall to creditors.
KPMG said there would be no actual sale of the business, which is in the process of being closed down, but some of WorldSpreads' software and data centre assets could be sold.
WorldSpreads suspended its shares last week after discovering possible "financial irregularities" in its accounts. It also said it owed clients millions of pounds.
WorldSpreads said its directors believed that, as of the close of business on March 16, there was a shortfall of around £13m sterling of client money.
