KPMG announces catch up distribution for former clients of insolvent Alpari (UK)

Maria Nikolova

The former clients of the retail FX broker will be notified via email by August 25, 2017 confirming that the Catch Up Distribution payment of 20 pence in the £ has been made to them.

The Joint Special Administrators of Alpari (UK) Ltd, the retail FX broker that went insolvent following the “Black Thursday” events from January 15, 2015, have today announced their plans to make a catch up distribution of 20 pence in the £.

In the announcement, the KPMG JSAs specify that the distribution will be paid to clients with agreed client money claims. The payment of the Catch Up Distribution is soon to be made to clients who have agreed their client money entitlement and contractual claim on the Claims Portal prior to the Bar Date, 30 October 2016.

The clients will be notified via email by August 25, 2017 confirming that the Catch Up Distribution payment has been made to them. The total amount being made available from the House estate for distribution in relation to the Catch Up Distribution is GBP 1,775,594.44. In addition, as a result of a reduction in the costs provided for when closing the client money pool, an amount of GBP 331,445.92, representing 0.03% of Client Claims can be distributed to clients. This sum has been added to the Catch Up distribution.

In line with the High Court directions regarding the client money pool (CMP), a second and final client money distribution of 27 cents in the $ (USD) was declared on May 31, 2017, taking total distributions to clients from the CMP to 82 cents in the $.

The administrators note that any clients who have not submitted a client money claim are no longer entitled to any distributions from the CMP. However, they can still proceed to agree their balance but any agreed balances on the Claims Portal will be treated as unsecured creditor claims.

The Financial Services Compensation Scheme (FSCS) will continue to compensate clients of the now defunct broker, up to a maximum of GBP 50,000.

As of the bar date (October 2016), $95.7 million of client claims have been agreed representing 98% of value of clients with a claim into the CMP. The administrators have paid a total of $77.9 million from the CMP in respect of 13,644 clients.

All preferential creditors have been paid in full.

With regard to unsecured creditors, KPMG says they have agreed unsecured claims of GBP 19,522,923. They have declared and paid two interim dividends totalling 20 pence in the £ (GBP) to all agreed unsecured creditors who have passed the necessary KYC checks. The total amount distributed to date is GBP 4,267,259 including preferential creditors and payments of PAYE on certain unsecured claims.

The administrators continue their co-operation with the UK Financial Conduct Authority (FCA), keeping the regulator updated of the case progress. On top of that, KPMG have provided the FCA with all information it has requested in relation to Alpari (UK) and its clients, a process set to continue for the duration of the special administration.

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