FSCS says no need for AFX customers to make claims at this stage

Maria Nikolova

The UK Compensation Scheme says it is working closely with the Special Administrators to determine AFX’s position in regards to client money.

The UK Financial Services Compensation Scheme (FSCS) has just posted some information for clients of AFX Markets Ltd, which went into administration earlier this month.

FSCS explains that the Special Administrators of CG Recovery will carry out an assessment of the client money held by the firm to confirm the current position. After this, the Special Administrators will work to return as much client money as possible to customers, as quickly as possible.

The body says it is working closely with the Special Administrators to determine the firm’s position in regards to client money.

“At this stage there is no need for customers to make a claim with FSCS”, the Scheme says.

Instead, customers are encouraged to subscribe to receive the latest updates on FSCS’s handling of the AFX failure.

On August 27, 2019, the High Court of Justice of England and Wales appointed special administrators to AFX Markets Limited. The firm 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 initial view in the early stages is that there is likely to be a deficit in the client money”, the Financial Conduct Authority has said.

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