KPMG, the international audit and consulting giant that is serving as the special administrator of the bankrupt forex broker Alpari UK, announced it got a green light from the English High Court to distribute the client money held by the company.
The Alpari UK clients have until October 30, 2016, 23:59 (GMT) to submit their money claims with the Joint Special Administrators Richard Heis, Samantha Rae Bewick and Edward George Boyle of KPMG LLP. Clients who have not submitted their claims by the last date for proving will not be entitled to share in the proposed distribution of client monies.
The court order permits the administrators to apply a de minimis threshold of US$51.50 in respect of claims where there would be a total distribution of less than US$51.50 and they do not intend to make payments of sums less than that.
The Joint Special Administrators intend to make a final distribution to clients by 24 July 2017.
Provision is being made in Alpari’s general estate for creditor claims connected with those clients who have not submitted a claim in respect of their client money entitlements.
Alpari will assist clients who have not claimed to contact the FSCS in order for those clients to try to make a claim for compensation for their client money entitlement from the FSCS. According to UK law, the Financial Services Compensation Scheme (FSCS) covers all financial services providers regulated by FCA up to £50,000 per person.
According to a report from this past August, the FSCS has already paid a total of $ 51.3 million in compensation to 11,751 clients.
Alpari UK went belly up in January 2015 when the Swiss franc shock caused volatility on the forex markets and the brokerage experienced lack of liquidity.
The broker’s other units – in Russia, Saint Vincent and the Grenadines (SVG), Mauritius, the UAE and Belarus are still operating.