FSCS Distributed $51.3m to Alpari UK clients, unsecured ones get back almost 80 cents on the dollar

FSCS Distributed $51.3m to Alpari UK clients, unsecured ones get back almost 80 cents on the dollar

The latest report by KPMG, which acts as special administrator on the bankruptcy case of Alpari UK, reveals that FSCS has paid a total of $ 51.3 million in compensation to 11,751 clients. What is more, KPMG estimates that the overall return to unsecured clients would be in the range of 78.3 cents to 79.7 cents on the dollar.

The U.K. Financial Services Compensation Scheme (FSCS) covers all financial services providers regulated by FCA up to £50,000 per person. Those clients of Alpari UK who had less in their account balances by the time the broker filed for bankruptcy, should be able to get back most (if not all) of their funds from the FSCS.

Furthermore, according to the report, 15,378 clients have agreed their claims (which amounts to 95.7 per cent by value of clients with a claim into the CMP), and 192 clients have disputed their claims into the CMP with the value of their holdings estimated at $1.6 million.

The report also shows that Alpari UK has sold its clients base to ETX Capital for $1.2 million and also sold 2,048 IP addresses to Webzilla BV for a total of $15,000.

With the UK Financial Conduct Authority (FCA) approving the closure of the CMP, the Alpari UK bankruptcy proceedings are finally coming to an end. The preferential creditors of the company have been repaid in full, while the unsecured dividend receivers have gotten 20 pence on the pound.

We remind you that leading forex broker in Russia, operated a UK-regulated branch that went insolvent in January 2015 after the Swiss franc shock, which caused extreme lack of liquidity. Currently the brokerage group, which still does not have a license from the regulator Bank of Russia, operates through its units in Saint Vincent and the Grenadines (SVG), Mauritius, the UAE and Belarus.

Earlier in July, Alpari announced that it is withdrawing its license application from Malta, but is still committed to establishing a European STP regulated unit.


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