KPMG closes client money pool of insolvent Alpari (UK)

Maria Nikolova

The fifth progress report on the insolvency of retail FX broker Alpari (UK) shows the special administrators have paid a total of $77.9 million from the client money pool in respect of 13,644 clients.

The joint special administrators (JSAs) from KPMG have just published their fifth progress report into the case of Alpari (UK), one of the retail FX brokers that went insolvent following the “Black Thursday” events from January 2015.

The latest report into the Alpari (UK) case covers the period from January 19, 2017 to July 18, 2017. It announces the closure of the client money pool (CMP) – a step that was expected as it is in line with directions received by the High Court. The CMP has now been closed and no further costs or realisations will be charged or credited, the administrators state.

Following the High Court directions regarding the 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. 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.

Regarding 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 to co-operate with the Financial Conduct Authority (FCA), keeping the regulator informed of the case progress. In addition, KPMG have provided the FCA with all information it has requested in relation to Alpari (UK) and its clients, a process expected to continue for the duration of the special administration.

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