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Screenshot of a breaking news alert e-mail from Q2 2017
We’re (finally) getting closer.
Alpari UK special administrator KPMG has announced that it intends to make initial distributions to former clients of the insolvent broker soon after May 31. Still, more than a month away.
Clients which want to be part of this first distribution need to agree their balances on KPMG’s Client Portal by May 31.
KPMG indicated that at this time they expect that initial payouts to clients will be in the 51% range – i.e. 51 cents on the dollar for each dollar owed to that client. Only later will the clients be receiving more of their money – either from KPMG if after paying fees there remains more money in the client money pool, or from the FSCS investor compensation fund, for balances up to £50,000.
KPMG also stated that in this first post-May 31 distribution it will not be distributing any money to clients with a distributable amount of $200 or less – which means you need to have a balance of around $400 or more to get anything, at least at the initial distribution
KPMG states that it is not economical for the client money pool to bear the administrative costs of an interim distribution at the expected level of (as stated above) circa 51% to clients with that small a balance. Clients with a distributable amount of less than $200 will continue to have a claim into the client money pool, and will receive their distribution when further distributions have been declared and it is more economical to do so.
Last, KPMG admitted that some Alpari UK clients still have not been granted access to the Client Portal. KPMG did not give a reason, just that they hope to resolve the issue soon. From where we stand it seems like a technical glitch on KPMG’s part, and not related to whether or not a client had outstanding trades on January 15, CHF related or otherwise.
To read the KPMG updated letter to creditor and clients click here.
More details, including the plan to exclude sub-$400 accounts from the initial distribution, can be seen here.