An update to clients of insolvent retail Forex broker Alpari (UK) Limited appeared earlier today on the Financial Services Compensation Scheme (FSCS) website.
The announcement would be of interest to those (former) clients of the broker that decide to make a separate claim for compensation to FSCS. Those clients should explicitly state their intention to proceed this way on the designated Claims Portal that the joint special administrators from KPMG launched less than a week ago.
FSCS confirms in its announcement that its work on process of claim agreement is intertwined with that of KPMG. This seems to be the case as FSCS will pay valid claims on the basis of account balances agreed on the dedicated claims portal.
The announcement specifies:
Any acceptance by you of FSCS compensation will result in your entire claim to the JSAs being transferred to FSCS and FSCS will receive any future JSA dividend that would otherwise have been paid to you. However, you may be entitled to some or all of those dividends if your claim is in excess of FSCS’s compensation limit of GBP 50,000. Once the JSAs have notified us of your intention to make a claim to FSCS for compensation, we will contact you.
Meanwhile, KPMG representatives are contacting some of the clients who held only cash balances on their accounts with Alpari UK as at 9:00 GMT January 15, 2015 and who entered no subsequent trades. These clients are asked to agree their account balances and to submit a claim.
The announcement by FSCS, albeit trivial at first sight, is a good piece of news for those clients of Alpari UK that have account balances below GBP 50,000. This means that after FSCS examines their claims they can get their money back in full. For the remainder of the funds, they should wait further.
The official announcement by FSCS can be read here.