The team at KPMG in charge of managing the affairs of Alpari UK following the brokerage’s fatal CHF losses has announced another step toward returning retail clients’ money.
According to securities laws in the UK governing local brokers, all client funds need to be held in segregated bank accounts and are therefore protected in case of insolvency. KPMG has so far given no indication that any of the money is missing and appears to be on track for a complete reimbursement.
KPMG explains that one of the Joint Special Administrators’ objectives is ensuring the
return of client assets (including client money) “as soon as is reasonably practicable.” However, before client money can be returned, the administrators say regulations require that each client agrees to their client money entitlement.
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In order to facilitate this process, KPMG say they are developing a website, to be called “the Claims Portal,” which will give retail clients access to agree to their claims and provide information that will assist in a process for the payment of distributions.
The administrators add that because Alpari UK had a very large number of retail clients (in excess of 100,000), the claims website is considered to be a significantly more efficient and cost effective approach for agreeing to claims than using a manual claim process.
It is estimated by the team that it will take them several weeks to design, develop, test and implement the website. At this stage, KPMG says there is no requirement for people who believe they have money held with the firm to submit a claim.
This new website will only be available to Alpari UK’s retail clients as the administrators say “professional clients,” suppliers and other creditors who have a claim from the firm will be notified in due course by KPMG on how to submit a claim.