London Broker Is Offloading Cannabis Stocks on Legal Advice, Telegraph Says

(Bloomberg) -- IG Group Holdings Plc wants to sell its clients’ cannabis shares before the end of May after seeking legal advice, the Sunday Telegraph reported, without saying where it got the information.

Aurora Cannabis Inc., Aphria Inc. and New Age Beverages Corp. are among stocks affected by the decision, according to the newspaper. IG told clients that activities such as a cannabis index, contracts for difference trading and spread betting on cannabis stocks wouldn’t be affected, the newspaper said.

“Under English law, U.K. investors that hold shares or invest in companies whose business activities involve the cultivation of cannabis or sale of cannabis-related products are likely to be at risk of committing a criminal offence,” law firm Macfarlanes LLP said on its website in January.

London-based IG said there’s been an “absence of clear rules or guidance” on cannabis-related stocks, according to the Sunday Telegraph. The broker didn’t immediately respond to a Bloomberg News request for comment on Sunday.

©2019 Bloomberg L.P.