Final report into Alpari (UK) administration is out, agreed final client balances total $95.8m

Maria Nikolova

All matters within the special administration have now been dealt with and KPMG has applied to cancel the FCA registration of Alpari (UK).

The Joint Special Administrators of KPMG have earlier today posted their final progress report into the administration of now-defunct retail FX broker Alpari (UK).

The final progress report covers the period from January 19, 2018 to May 18, 2018, and marks the end of efforts that started in March 2015, when the broker confirmed it was into trouble after the SNB decision that led to the CHF spike on January 15, 2015.

The final progress report is issued following the receipt of the Court Order regarding closure of the special administration. The JSA’s application to the Court was heard on April 18, 2018 and they obtained an Order for their appointment as Special Administrators to cease to have effect upon the registration by the Registrar of Companies of the final progress report. In addition, the JSAs will be discharged from any liability with effect from 28 days after the date on which the appointment ceases to have effect. All matters within the special administration have now been dealt with and the JSAs have applied to cancel the FCA registration of Alpari (UK).

KPMG has filed a copy of the progress report with the Registrar of Companies together with the requisite notice. The special administration will cease to have effect when the Registrar of Companies registers these documents. The broker will be dissolved three months after that date.

Let’s summarize the numbers:

  • Agreed final client balances totalled USD 95.8 million.
  • During the special administration, the JSAs have paid and declared two client dividends totalling 82.0 cents in the $ (USD).
  • On April 30, 2015 an initial client money distribution of 55 cents in the dollar was declared by the Joint Special Administrators from the Client Money Pool (CMP), with the initial distribution made on June 24, 2015.
  • A second and final client money distribution of 27.0 cents in the $ (USD) was declared on May 31, 2017, bringing total distributions to clients with an agreed claim from the client money pool to 82.0 cents in the $ (USD).
  • In August 2017, a “catch-up” dividend of 20 pence in the £ (GBP) was made to clients, being equal to the interim distributions made to unsecured creditors.
  • On 23 February 2018, the JSAs declared and paid a final dividend of 23.54 pence in the £ (GBP), bringing total unsecured distributions to 43.54 pence in the £ (GBP).
  • All preferential creditors have been paid in full. The total value of agreed unsecured claims (excluding client unsecured claims but including employee unsecured claims) is GBP 21,625,599. Client unsecured claims total GBP 8,957,898.

The dedicated e-mail address and call centre for enquiries will no longer be in use from June 18, 2018. KPMG has provided contact details for the Insolvency Service regarding unclaimed dividends and for the FSCS for clients who have not as yet assigned their claim and may wish to do so.

Any information and circulars issued to clients and creditors during the special administration can be found at http://www.kpmg.com/uk/alpari. The website will remain accessible until May 18, 2019.

Client creditors who have not yet received compensation from the FSCS are still entitled to claim compensation from the FSCS in respect of their losses for the reminder of their agreed account balance up to their limit of GBP 50,000 person.

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