FSCS’s payouts to LQD Markets’ clients total $2.75m
The Administrators are continuing to pursue debtors, whereas the causes for the deficit in client monies are not stated.
The Financial Services Compensation Scheme (FSCS) has thus far paid out 320 claims, totalling $2,747,373, to former clients of now-defunct retail FX broker LQD Markets (UK) Limited. The broker appointed joint special administrators in February 2015, following the SNB decision in January 2015 and the consequent market volatility of the CHF.
Earlier today, Matthew Robert Haw, Graham Bushby and Matthew Wild, of RSM Restructuring Advisory LLP, the Joint Special Administrators of the broker, filed their sixth progress report into the case. The latest report covers the period from August 2, 2017 to February 1, 2018.
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 dollar equivalent of US$4,383,220. These claims have been sent to the FSCS to give clients an opportunity to assign their claims to the FSCS and make an application for compensation.
The FSCS last advised that they have paid out 320 claims. The Administrators are now awaiting a further update.
The Administrators continue to pursue client debtors. Debt collection professionals have been instructed to assist with the collection of 12 client debtors with a combined balance of approximately GBP £382,576.08. The Administrators are continuing to pursue debtors totalling £359,156.16. The JSAs say they will continue to pursue the remaining debtors and update clients and creditors accordingly.
Regarding any distribution to clients, the Joint Special Administrators are set to make an application to Court to request a bar date is set for clients to submit claims and to commence the distribution process. The FSCS have advised that they will distribute funds in US$, but the Joint Special Administrators have not decided what currency they will distribute in as they are not yet in a position to make a distribution.
Regarding the deficit of more than $2.9 million uncovered by the administrators, the report bluntly states that there are various possible causes for it, without any further elaboration on what these causes are.
