FSCS’ payouts to customers of defunct broker LQD Markets total $2.89m
The Special Administrators of LQD Markets (UK) have just posted their 8th progress report.
The Special Administrators appointed at LQD Markets (UK) Ltd, a retail Forex broker that went insolvent soon after the January 15, 2015 events, have just published their 8thprogress report, covering the progress of the administration in the period from August 2, 2018 to February 1, 2019.
As previously guided, the Special Administrators have instructed lawyers to commence with the application to Court to request that a bar date is set for clients to submit claims and to commence the client monies distribution process.
The Special Administrators have been in touch with the Financial Conduct Authority (FCA) to make sure that the application will comply with the Client Assets Sourcebook (CASS) rules. The FCA advised that the proposed bar date application required modifications to the CASS rules. The Special Administrators worked with their legal advisors and the FCA to make an application to modify the CASS rules. The formal application was submitted on February 15, 2019 and the administrators are now awaiting the outcome of the application from the FCA.
Assuming the modifications are approved by the FCA we will then apply to Court for approval of the Bar date mechanism to distribute funds.
It is anticipated that the distribution will be made in Euros for the benefit of clients.
The Joint Special Administrators continue to review and agree clients’ claims with a view to them making a claim to the Financial Services Compensation Scheme (FSCS) for compensation under the terms of the scheme. To date, the administrators have agreed 557 clients’ claims totalling approximately US$4,416,364. These claims have been sent to the FSCS to give clients an opportunity to assign their claims to the FSCS and make an application for compensation.
Once an agreed claim has been sent to the FSCS, the administrators do not have any further involvement in the process regarding payment of any compensation to the client under the terms of the scheme.
The FSCS last advised that they have paid out 343 claims, totalling US$2,888,493.
Following the special administrators’ appointment, client funds of £1,407,615.70 were transferred to the Special Administration accounts.
Where necessary the Administrators have continued adjudicating on clients’ claims and responding to client queries specifically relating to the compensation process. Once a client’s claim has been agreed, their details are passed to the FSCS who then send the client an application form to enable them to assign their claim to the FSCS and subsequently apply for compensation.
Whereas the Administrators will continue to assist the FSCS, the compensation process is being dealt with independently by the FSCS. Therefore, clients of LQD Markets are advised to continue to contact the FSCS directly to pursue their application form and compensation at [email protected] or on +44(0)207 741 4100 or Freephone if in the UK 0800 678 1100, rather than contacting the Special Administrators, as dealing with these queries has increased the costs incurred.