FCA confirms AFX Markets is in administration
The High Court of Justice of England and Wales has appointed CG Recovery as special administrators to AFX Markets Limited.
Shortly after it became clear that the UK Financial Conduct Authority (FCA) has ordered AFX Markets Limited to cease trading activities, the regulator has confirmed the appointment of special administrators at the company.
The FCA has just announced that, on August 27, 2019, the High Court of Justice of England and Wales appointed special administrators to AFX Markets Limited.
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. Since the Cypriot regulator CySEC announced the suspension of AFX’s license, AFX’s website has gone black, as FinanceFeeds reported.
According to figures provided by the firm to the FCA, it has approximately 1,200 customers and is responsible for the safekeeping of approximately £7.5 million of client money.
The special administration order appoints insolvency practitioners from CG Recovery Limited (CG Recovery) (which also trades as CG&Co) as special administrators of AFX Markets.
For further information on the special administration of AFX Markets, please email [email protected]
Jonathan Avery-Gee and Daniel Richardson from CG Recovery have been appointed as the joint Special Administrators. They can be contacted by email: [email protected] or by phone: 0330 995 1241.
The special administrators will assess the client money position of AFX Markets as part of their work. Once the special administrators have carried out this assessment, whether there is any client money missing will become clearer. Trades placed are ultimately executed by AFX Capital and because of this the majority of client money is held with this company in Cyprus.
“The initial view in the early stages is that there is likely to be a deficit in the client money”, the FCA says.
The Special Administrators will work with the FSCS to determine the position and will provide further updates.
AFX Markets is still authorised by the FCA and remains subject to supervisory oversight and its rules.