Following the insolvency of FX brokerage LQD Markets in January as a result of exposure to negative client balances which were brought about by the Swiss National Bank’s removal of the 1.20 peg on the EURCHF pair, the Financial Services Compensation Scheme (FSCS) has been provided by Baker Tilly, the Special Administrators of the firm, with all of the information they hold in relation to the monies due to clients and the products offered to clients of the company.
The FSCS is the UK’s statutory compensation scheme for customers of authorized financial services firms that facilitiates the payment of compensation if a firm is unable, or likely to be unable, to pay claims against it.
Baker Tilly has confirmed today that it understands that this information has been reviewed by the case team at the FSCS and that the case has now been passed to the FSCS’ legal team to decide which products (if any) that were offered by the company, are covered under the compensation scheme.
Baker Tilly has requested that the FSCS provides a timescale for when it expects that the legal team will advise whether the products offered fall under the scheme or not. To date, Baker Tilly has not been provided with any specific timeframes.
As soon as confirmation is received from the FSCS, Baker Tilly will notify clients and provide details on how they can make a claim with the FSCS if that is the appropriate route.
The firm advises clients that if they have not already provided a claim, then this can be done by forwarding a copy of the most recent statement from LQD Markets to [email protected]
Baker Tilly requests that it be noted that the Special Administrators are continuing to carry out investigations into the reason for the deficit and will provide an update to clients and creditors as and when appropriate, and that an update will only be placed on the website if the Special Administrators have new information to provide to clients.
For the official announcement from Baker Tilly, click here.