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Today, following the insolvency and subsequent administration into which Alpari UK has entered, the Japanese Financial Services Authority (FSA) has confirmed that the firm’s Japanese operation has followed suit.
The move was apparently made to protect Alpari Japan creditors and customers, so that their interests are not hurt by the potential outflow of Alpari Japan’s assets triggered by the insolvency announcement of Alpari UK.
The following appeared today on Alpari Japan’s website (apologies for the poor Google Translate translation, but the point gets across).
We would note, as we have before, that the insolvency of Alpari UK does not affect other Alpari Group companies (except for Alpari Japan of course, which was held under Alpari UK), including the flagship Alpari RU operation.
LeapRate reported that Alpari’s Japanese division had issued a notice to its customers advising them to withdraw their funds due to the firm’s parent company, Alpari UK, being insolvent, however following yesterday’s appointment of auditing company KPMG LLP as official administrators by Alpari UK, the FSA has stated the following:
Administrative Actions on Alpari Japan K.K.
Based on both i) the current situation of Alpari (UK) Limited, a parent company of Alpari Japan K.K. [hereinafter referred to as “Alpari Japan”] and ii) the relationship between Alpari (UK) Limited and Alpari Japan in terms of capital and transactions, it is necessary to fully ensure that interests of creditors and investors are not damaged by the outflow of Alpari Japan’s assets to overseas affiliated companies, etc., triggered by the announcement of Alpari (UK) Limited.
Therefore, Kanto Local Finance Bureau issued administrative orders to Alpari Japan on 16th January, 2015 based on Article 56-3 and Article 51 of Financial Instruments and Exchange Act.
(1)Order of retention of assets within Japan (Article 56-3)
Alpari Japan has to retain certain assets within Japan equivalent to all liabilities excluding liabilities to overseas (including guarantees).
(2)Business Improvement Order (Article 51)
i)Accurately identify investors and assets deposited from investors.
ii)Take necessary measures to assure deposited assets from investors and not to inappropriately consume the company’s assets.
iii)Take full measures for investor protection, considering equitable treatment among investors.
iv)Keep investors informed appropriately about retention of deposited assets, with due care to investors.
Kanto Local Finance Bureau
First Securities Business Surveillance Section
Financial Services Agency, Government of Japan
Securities Business Division, Supervisory Bureau
(ext. 3637, 3586)
In order to view the official document from the Japanese FSA, click here.