UK FSCS approves compensations for AFX Markets customers
The FSCS is free to use and doesn’t require a representative to make a claim, which means claimants will receive 100% of any compensation if they claim with them directly.
The UK Financial Services Compensation Scheme (FSCS) has completed its initial review of AFX Markets Ltd. and concluded that customers may be able to receive compensation regarding the losses suffered.
A total of 418 clients, who claimed to be owed a combined sum of GBP 13.77 million, submitted claims to the administrators. Some 75 client claims (totaling GBP 2.6 million) have been rejected in full or in part. The administrators report that 180 claims with a combined value of GBP 6.78 million are currently held pending the receipt of further information.
In August 2019, the UK Financial Conduct Authority (FCA) announced that the High Court of Justice of England and Wales appointed special administrators to AFX Markets Limited. The special administration order appointed insolvency practitioners from CG Recovery Limited (CG Recovery) (which also trades as CG&Co) as special administrators of AFX Markets.
The FCA made the court application because of concerns that AFX was unable (or likely to be unable) to pay its debts. Also, special administration would protect client money, and help return that money to clients as soon as possible.
A previous court action by the FCA (on 31 July) froze all AFX’s assets and required AFX to stop any regulated activity, except to close all open positions. The FCA took this action because of concerns about AFX’s financial position and its arrangements for safeguarding client money.
AFX Markets Limited is a UK registered company that has been authorized by the FCA since May 2012 to act as a broker for customers trading on its online FX and CFD trading platforms.
“We will shortly be asking clients of AFX Markets Ltd to submit claims via our online claims service. Owing to the complexity of the AFX Markets failure we will review claims on a case-by-case basis. Also, customers are likely to be asked to complete a supplementary form in relation to AFX”, the FSCS stated, adding they are sorry for taking so much time to complete the review.
The FSCS is free to use and doesn’t require a representative to make a claim, which means claimants will receive 100% of any compensation if they claim with them directly.
