Cypriot Investors Compensation Fund to invite AFX Capital’s victims to submit claims

Maria Nikolova

The process for compensating clients of AFX Capital Markets has finally budged.

The Board of the Cyprus Securities and Exchange Commission (CySEC) today published a notice regarding the compensation process for clients of AFX Capital Markets Ltd.

The Cyprus Investment Firm authorisation of AFX Capital Markets Ltd, number 119/10, has been suspended since July 19, 2019.

As per paragraph 18(1)(a) of Directive DI87-07 of 2019 for the Operation of the Investors Compensation Fund (R.A.D. 76/2019), CySEC has determined that the AFX (member of the Fund) for the time being, for reasons directly related to its financial circumstances, is unable to meet its obligations arising out of investors’ claims and has no early prospect of being able to do so.

Following the initiation of the compensation payment procedure, the Fund will publish, in at least two newspapers of national coverage, an invitation to submit compensation applications, designating the procedure for the submission of the relevant applications, the deadline for their submission and their content. The said publication will be also posted on CySEC’s website.

All affected clients (covered clients of AFX) are invited to study Directive DI87-07 (R.A.D. 76/2019) as well as the information for the submission of compensation applications and take all appropriate actions for the submission of their claims.

In the UK, the Joint Special Administrators (JSAs) of AFX Markets Ltd last week published their progress report for the period from August 27, 2019 to February 26, 2020.

The report includes a notice regarding a bar date, that is, a cut-off date for submitting claims. The Administrators consider that it is necessary, in order to expedite the return of client money, to set a bar date of 17.00 hours (GMT) on June 1, 2020 (the “Client Money Bar Date”) for the submission of claims (“Client Money Claims”).

The Client Money Bar Date only applies to client money and does not apply to other client assets. If you fail to submit your Client Money Claim by the Client Money Bar Date, the Joint Special Administrators will not be able to guarantee that your Client Money Claim will be satisfied in whole or in part, or indeed at all in certain circumstances.

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