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Screenshot of a breaking news alert e-mail from Q2 2017
Alpari UK special administrator KPMG has announced that the English High Court has approved its request to wind up the Alpari UK Client Money Pool, and distribute the rest of the Alpari UK client money it is now holding.
As was exclusively reported on LeapRate in late September, a quirk in UK bankruptcy law was preventing KPMG from closing out the Client Money Pool and making final distributions, requiring the special request from the court. (Our report on the issue went viral, getting more than 3,000 social shares on Facebook, LinkedIn, et al).
Most of the money will now actually go the UK Financial Services Compensation Scheme (FSCS), to which most Alpari UK clients turned to get their money back. The FSCS, in turn, will now be reimbursed from the Client Money Pool.
Former Alpari UK clients who have not yet submitted a client money claim, but wish to do so, must provide their claim to KPMG by October 30, 2016, 23:59 GMT. Clients who have not submitted a client money claim to Administrator by then will not be entitled to share in the proposed distribution of client monies.
KPMG intends to make a final distribution to clients by July 24, 2017.
FCA-regulated Alpari UK went belly up immediately following the surprise Swiss Franc spike of January 15, 2015 – more than 20 months ago. Virtually all of the $98 million in client funds held at Alpari UK were indeed accounted for and in place in segregated client bank accounts. However so far, KPMG has been able to distribute just 55 cents on the dollar to claims against the Client Money Pool.
In total, KPMG expects to distribute 79 cents on the dollar from the Client Money Pool. Clients whose balances were £50,000 or less should be able to recover their entire account balance via the FSCS.
The court decision approving KPMG’s request can be seen here.
The full KPMG explanation regarding the final distribution can be seen here.