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Marketspreads' accounts audit nears completion

Marketspreads could be in a position to present audited accounts to the Central Bank by Monday week, paving the way for the company to resume operations, it's understood.

The spread-betting firm is also engaged in continuing discussions with the regulator to determine any capital adequacy issues, and hopes to determine what remedy, if any is needed, would satisfy the Central Bank.

The regulator gave Marketspreads permission on Wednesday to return up to €10m in cash to its clients. Marketspreads took a decision to return all client cash, regardless of whether it was requested or not. The firm has about 2,000 customers.

While the Central Bank gave the firm permission to release the funds, it said it still needed to address regulator concerns about its financial statements and capital position. Marketspreads has received a €2.5m pledge to boost its capital base.

Auditors Ernst & Young were unable to give an opinion on accounts dating back to 2009, the year before Marketspreads was spun out of Worldspreads in a management buyout.

Marketspreads has been pushing to have an audit of its 2010 accounts wrapped up quickly by current auditor, Hughes Blake. The accounts are likely to verify the directors' view of the business as having no other legacy concerns.

Irish Independent