London Capital Group names new CEO
Kevin Ashby, replaces Mark Slade at UK online trading operator and cites need for further investment to drive longer-term growth
London Capital Group has named Kevin Ashby as its new CEO, replacing Mark Slade who resigned in July owing to personal reasons.
Ashby joins the company as it returned to profit in the six months ended 30 June, following the “challenging conditions” cited for its poor performance in the second half of last year.
Ashby said the firm needed further investment in marketing, sales and product development in order to drive longer-term growth after a reduction in marketing spend during H1 saw a 22% year-on-year drop in new client acquisition.
“This fall demonstrates the need to reinvest in a more focussed and efficient approach to our private client marketing and sales activity, which is already underway, and I expect to see an improvement in the fourth quarter,” Ashby said.
Ashby said he will also address problems originating from LCG’s upgrade to its trading platform, which he believes have resulted in an “insufficient focus on enhancing our clients’ trading experience”.
He confirmed a number of projects have now been initiated designed to address the problems, which are also aimed to position the group as an innovator in the sector.
One of Ashby’s major challenges will be to steer the company through its approaching hearing regarding complaints made to the Financial Ombudsman Service.
The company revealed in a trading update that a further exceptional charge of £1.1m has been recognised, increasing the financial provision required for compensation to £4.7m.
The claims relate to the termination of a fee sharing agreement between LCG subsidiary London Capital Group Limited and Integrity Financial Solutions Limited, which introduced clients to the fund. LCG views the claim as without merit, with the company expecting the matter to be resolved later this year.