IG surges as it welcomes cowboy curbs

Spread-better IG Group today said it is in good shape to weather a looming crackdown, cheering the City and sending the shares up 9%.

The company, which railed against industry cowboys who bombard “unsuspecting customers” with dangerous products, is backing the Financial Conduct Authority’s efforts to tighten up on the sector.

The watchdog will publish its final proposals next year after sending shock waves through the share prices of the listed players last December when its initial plans were announced.

But the company’s 3% rise in pre-tax profits to £213.7 million for the year to May 31 beat City hopes, sending the shares up 50.25p to 605.25p.

Boss Peter Hetherington said: “None of the recently announced regulatory changes have adversely impacted the business to date, and the current year has started well.”

A third of IG’s new UK punters are signed up to the company’s “limited risk” accounts.

The product has a double safeguard, which requires all clients to set a maximum downside risk for every trade and avoids them slipping into outright losses.