UK FSCS approves compensations for AFX Markets customers

Rick Steves

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.

 

 

Read this next

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

<