The special administrators of bankrupt brokerage firm, Alpari (UK) Limited (Alpari), today announced that claimants awaiting payment under the UK Financial Services Compensation Scheme (FSCS) will have to wait until later in the month to receive payments. KPMG, who were appointed receivers in January 2015, note that they are “not yet in a position to proceed with the next batch of compensation payments.”
However, those claimants that have already agreed to their client money entitlement and contractual claim can expect notification from KPMG confirming payment in late July, and payment should be received within 10 working days from the notification.
There are also a number of accounts with a status of ‘pending’; specifically, those claimant accounts with information still outstanding. According to the update, “clients likely to be affected are those that are holding joint accounts, those that are holding accounts in the name of a company, or those accounts with a non-residential address.”
Nonetheless, many of those affected by a ‘pending’ status should have received a distribution from the administrators of 55 cents in the dollar on June 24.
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Back in March, the FSCS reassured Alpari clients that they would be fully compensated for up to £50,000 of deposits at the brokerage. Since then, delays have frustrated claimants, with FSCS even issuing an apology in April.
Consequently, the administrators have been rushing to ensure that claims are being managed efficiently. KPMG have set up a Claims Portal, through which claims are managed. Claimants who are covered by FSCS have therefore been required to submit their information via this portal, except those accounts held in joint names or in a trust or corporate entity, who were required to complete a FSCS claims form.