Baker Tilly, the administrators of ill-fated retail Forex broker LQD Markets (UK) Limited, which halted its operations on January 27, 2015, as a result of the Swiss franc spike, today published an update regarding the administration process.
The update consists of a FAQ document, with the bigger part of the information related to the upcoming Meeting of Clients and Creditors, scheduled for April 10, 2015.
The administrators remind that participation in the meeting is not obligatory but those who attend will be able to vote on the proposals by the joint special administrators and to ask them questions concerning LQD Markets and the administration process. Attending or not attending the meeting will have no impact on anyone’s claims processing, the announcement says.
In a previous article, LeapRate has already shed some light on the proposals by the joint administrators regarding the future of LQD Markets. The plans envisage the company to exit the special administration by dissolution. This happens to companies that cannot be sold in their entirety, that is a buyer willing to acquire the business along with its debts and other obligations cannot be found.
The administrators have confirmed that during the claims review the number of clients LQD Markets (UK) Limited had turned out to be higher than expected, with their claims adding to the size of the deficit on client monies. According to the latest estimates provided by Baker Tilly, the deficit is at $2.84 million, twice bigger than initially projected.
Regardless of the size of this deficit, the administrators advice former clients of the broker to submit their claims. In today’s FAQ document, Baker Tilly says the administrators are in touch with the Financial Conduct Authority (FCA) and the Financial Services Compensation Scheme (FSCS). At the moment, Baker Tilly is waiting for a confirmation by the FSCS on whether all trading products on offer by LQD Markets are covered by the scheme.
You can view the full updated list of FAQ by clicking here.