Administrators of AFX Markets report client claims worth £13.77m submitted before Bar Date

Maria Nikolova

The administrators are awaiting confirmation from the FSCS as to when they will be in a position to accept the approved claims for processing for compensation.

The Joint Special Administrators (JSAs) of AFX Markets Ltd today published their progress report for the period from February 27, 2020 to August 26, 2020.

AFX clients were given a Bar Date of June 1, 2020 for submitting their claims to the administrators in order that their claims could be reviewed before being submitted to the Financial Services Compensation Scheme (FSCS) in respect of compensation.

A total of 418 clients, who claimed to be owed a combined sum of GBP 13.77 million submitted claims to the administrators. Some 75 client claims (totalling GBP 2.6 million) have been rejected in full or in part. The administrators report that 180 claims with a combined value of GBP 6.78 million are currently held pending the receipt of further information.

The administrators are awaiting confirmation from the FSCS as to when they will be in a position to accept the approved claims for processing for compensation.

On the downside, despite attempts to obtain information regarding the funds held in the AFX Capital Markets Ltd’s account from the Cyprus Securities and Exchange Commission (CySEC), the Cypriot regulator has yet to confirm any tangible information in this matter to the administrators.

“It is unlikely that there will be any realisations from this source to the benefit of clients in this Administration”, the administrators state in their latest report. However, further enquiries will be made to CySEC.

Let’s recall that, in August 2019, the UK Financial Conduct Authority (FCA) announced that the High Court of Justice of England and Wales appointed special administrators to AFX Markets Limited. The special administration order appointed insolvency practitioners from CG Recovery Limited (CG Recovery) (which also trades as CG&Co) as special administrators of AFX Markets.

AFX Markets Limited is a UK registered company that has been authorised by the FCA since May 2012. AFX Markets acted as broker for customers trading on its online trading platforms (ww.afxgroup.com and www.stofs.co.uk), principally in foreign exchange and contracts for difference products.

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