FSCS Distributed $51.3m to Alpari UK Clients, Repaid Negative Balances $920K

The latest progress report on the bankruptcy of Alpari UK has been published by the special administrator on the case, KPMG. The document encompasses the period between the 19th of January 2016 and the 18th of July 2016.

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The U.K. Financial Services Compensation Scheme (FSCS) has paid a total of $51.3 million to 11,751 clients. A total of 15,378 clients have agreed their claims, which amounts to 95.7 per cent by value of clients with a claim into the Client Money Client Money Client money refers to the money or margin – which may be any currency in the form of cash, check, draft, or electronic transfer – that a firm receives or holds for a client. Money held by a firm in the form of a stakeholder, which is are not payable on demand or immediately due, also refers to client money. The definition of client money does not apply to money held by businesses that operate in its own name on behalf of a client. Although the client does have to be in agreement before this arr Client money refers to the money or margin – which may be any currency in the form of cash, check, draft, or electronic transfer – that a firm receives or holds for a client. Money held by a firm in the form of a stakeholder, which is are not payable on demand or immediately due, also refers to client money. The definition of client money does not apply to money held by businesses that operate in its own name on behalf of a client. Although the client does have to be in agreement before this arr Read this Term pool.

total claims into the client funds pool amounted to $97.8 million

A total of 192 clients have disputed their claims into the client money pool with the value of their holdings estimated at $1.6 million. The liquidators from KPMG have paid out $51.8 million from the client money pool to 12,480 clients, which is 53 per cent of of the funds.

Total Client Money Claims $97.8 million

The total claims into the client funds pool amounted to $97.8 million, however the number is still not fine due to 4.3 per cent of the value not having agreed to the claims through the Claims Portal which was devised in order to facilitate clients.

KPMG estimates that the overall return to clients whose deposits are surpassing the £50,000 insured amount that is guaranteed by the FSCS would be in the range of 78.3 cents to 79.7 cents on the dollar. The total shortage in the client money pool totals about $22 million, as previously reported by Finance Magnates.

With the U.K. Financial Conduct Authority (FCA) permitting the closure of the client money pool, the Alpari UK proceedings are 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.

59 Negative Balance Negative Balance In its most basic form, a negative balance represents an account balance in which debits exceed credits. A negative balance indicates that the account holder owes money. A negative balance on a loan indicates that the loan has not been repaid in full, while a negative bank balance indicates that the account holder has overspent.In the retail brokerage space, this phenomenon occurs when a position’s losses in an account exceeds the available margin on hand from a given trader. When a trader place In its most basic form, a negative balance represents an account balance in which debits exceed credits. A negative balance indicates that the account holder owes money. A negative balance on a loan indicates that the loan has not been repaid in full, while a negative bank balance indicates that the account holder has overspent.In the retail brokerage space, this phenomenon occurs when a position’s losses in an account exceeds the available margin on hand from a given trader. When a trader place Read this Term Clients Entered Signed Installment Plans

Looking at the clients who have accumulated negative balances, Alpari UK has to date recovered about £710,000 ($920,000). In addition to this amount, 59 of the debtors have entered into installment settlement arrangements with the firm.

While recovery proceedings are going to continue in the coming months, KPMG has outsourced the service to Beeston Shenton Solicitors, which is operating on a ’no win no fee’ basis within the UK. Clients with negative balances outside of the UK have been approached on a case by case basis with the details not being made public in order to optimize the process.

Looking at the last bits of intellectual property, after receiving $1.2 million from ETX Capital for the client base, Alpari UK has also sold 2,048 IP addresses to Webzilla BV for a total of £11,328 ($15,000).