The UK Gambling Commission and Financial Conduct Authority (FCA) have come under heavy criticism in a UK government-commissioned study into the collapse of the Football Index gambling site.
The company was marketed as a “virtual footballer exchange” with player “stocks” traded for cash online and users earning cash dividends based on footballers’ actual performance on the pitch.
But he ran into problems after the coronavirus pandemic derailed football in March 2020, with the company announcing a series of multi-month adjustments that were aimed at helping keep things going.
Then on March 5 of this year, in an attempt to consolidate matters, the company drastically cut dividend cash payments, which caused stock prices to plummet and devastated many customers. Shortly after, the company has had its Gambling Commission license suspended then was placed under administration.
Malcolm Sheehan QC’s review, released Wednesday, details the multiple failures of UK regulators to keep tabs on the product and protect consumers, as well as the failures of the company itself.
“The review provides a number of useful recommendations on how the two regulators can work better together and on how our regulatory approach deals with new products,” said Andrew Rhodes, CEO of the Gambling Commission.
“In recent years, we have seen an increase in the complexity of business models and product offerings.
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