Alpari UK Bankruptcy a Year Later: Costs Rising, CMP Shortfall up to $22m
- A weaker GBP also tapped into the client money pool of Alpari UK clients.
The special administrators of Alpari UK have reported that the funds in the Client Money Client Money Client money refers to the money or margin – which may be any currency in the form of cash, check, draft, or electronic transfer – that a firm receives or holds for a client. Money held by a firm in the form of a stakeholder, which is are not payable on demand or immediately due, also refers to client money. The definition of client money does not apply to money held by businesses that operate in its own name on behalf of a client. Although the client does have to be in agreement before this arr Client money refers to the money or margin – which may be any currency in the form of cash, check, draft, or electronic transfer – that a firm receives or holds for a client. Money held by a firm in the form of a stakeholder, which is are not payable on demand or immediately due, also refers to client money. The definition of client money does not apply to money held by businesses that operate in its own name on behalf of a client. Although the client does have to be in agreement before this arr Read this Term pool (CMP) at bankrupt Alpari UK have decreased by almost $0.4 million partly due to the amount held in British pounds. As the exchange rate of the UK currency is starting to reflect the risks of a Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term, client money has fallen to $98,244,193 from the $98,653,000 reported back in April 2015.
The changes are relatively minor and are not expected to materially affect the outcome of client funds distribution. KPMG has also confirmed that its current expenses of $6.1 million have already been drawn from the client estate as previously reported by Finance Magnates. That said, another £1,150,076 ($1,632,992) has been drawn on the 22nd of January therefore marking the total to more than $7.7 million.
The company holds about $116,000 in e-Wallets which have not been subject to client money segregation rules. As a result the funds have been moved from the client money pool to the house estate pool.
Alpari UK has also had to pay $1.9 million in legal fees throughout the past year with an additional $2.4 million for wages up until the 30th of September, when the last employee of the brokerage was made redundant.
The company expects further legal fees and KPMG compensation fees to be drawn from the accounts of the firm with total KPMG costs estimated between $9.8 and $11.4 million, while additional legal fees could total about $2.5 million.
The shortfall in client claims is estimated to total between $19.8 and $21.7 million.
Due to the legal circumstances, the IT infrastructure which has been put in place to service client money claims would have to remain active for a period of three years, which will drive the cost of its maintenance to between $1.3 and $1.5 million.
Tax circumstances are also not in favor of Alpari UK clients and creditors with the expected amount of unrecoverable VAT tax totaling between $1 and $1.2 million.
The special administrators of Alpari UK have reported that the funds in the Client Money Client Money Client money refers to the money or margin – which may be any currency in the form of cash, check, draft, or electronic transfer – that a firm receives or holds for a client. Money held by a firm in the form of a stakeholder, which is are not payable on demand or immediately due, also refers to client money. The definition of client money does not apply to money held by businesses that operate in its own name on behalf of a client. Although the client does have to be in agreement before this arr Client money refers to the money or margin – which may be any currency in the form of cash, check, draft, or electronic transfer – that a firm receives or holds for a client. Money held by a firm in the form of a stakeholder, which is are not payable on demand or immediately due, also refers to client money. The definition of client money does not apply to money held by businesses that operate in its own name on behalf of a client. Although the client does have to be in agreement before this arr Read this Term pool (CMP) at bankrupt Alpari UK have decreased by almost $0.4 million partly due to the amount held in British pounds. As the exchange rate of the UK currency is starting to reflect the risks of a Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term, client money has fallen to $98,244,193 from the $98,653,000 reported back in April 2015.
The changes are relatively minor and are not expected to materially affect the outcome of client funds distribution. KPMG has also confirmed that its current expenses of $6.1 million have already been drawn from the client estate as previously reported by Finance Magnates. That said, another £1,150,076 ($1,632,992) has been drawn on the 22nd of January therefore marking the total to more than $7.7 million.
The company holds about $116,000 in e-Wallets which have not been subject to client money segregation rules. As a result the funds have been moved from the client money pool to the house estate pool.
Alpari UK has also had to pay $1.9 million in legal fees throughout the past year with an additional $2.4 million for wages up until the 30th of September, when the last employee of the brokerage was made redundant.
The company expects further legal fees and KPMG compensation fees to be drawn from the accounts of the firm with total KPMG costs estimated between $9.8 and $11.4 million, while additional legal fees could total about $2.5 million.
The shortfall in client claims is estimated to total between $19.8 and $21.7 million.
Due to the legal circumstances, the IT infrastructure which has been put in place to service client money claims would have to remain active for a period of three years, which will drive the cost of its maintenance to between $1.3 and $1.5 million.
Tax circumstances are also not in favor of Alpari UK clients and creditors with the expected amount of unrecoverable VAT tax totaling between $1 and $1.2 million.