FSCS to delay further payment to Alpari UK clients until at least late July

A rather gloomy update is out for former clients of Alpari UK, the broker that went into special administration after the events on January 15, 2015. The special administrators from KPMG announced today that the Financial Services Compensation Scheme (FSCS) is delaying the second tranche of compensation payments.

Whereas many of the former clients of the broker, who were not covered by the first payments batch in May, were expecting that FSCS will make the payments this week, the KPMG update says FSCS is set to delay the next payment tranche until late July.

The update says that “FSCS is not yet in a position to proceed with the next batch of compensation payments that are intended to be paid out to clients who have agreed their client money entitlement and contractual claim on the Claims Portal (“Clients”)”.

The precise reasons for the delay are not stated.

The special administrators provided some clarity regarding FSCS Pending accounts.

This issue concerns a number of Clients who have successfully agreed their claims with the Joint Special Administrators but may not yet have formally assigned their claim to FSCS. This is due to FSCS requiring further information from those Clients, and as a result these Clients have been given a ‘Pending’ status by FSCS.

FSCS are now sending out application forms to clients and this process may take some time. The JSAs are working with FSCS to ensure that as many application forms are sent out as soon as possible to allow Clients to progress their claims.

To view the latest update, click here.

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