In a report to the company’s creditors and clients, KPMG, which has been appointed as special administrator for the failed UK brokerage, revealed that client funds have been pooled almost in full.
It’s been over a month since the bankruptcy procedure for Alpari UK was triggered, prompting a series of actions by the special administrator appointed for the case, KPMG. The company has been collecting information about client balances after the opened positions of the clients were closed on the 16th of January in the aftermath of the Swiss National Bank shock.
According to the document released by KPMG, Alpari UK had already been in the negative for the year ending on December 31st, 2013, when it suffered losses to the tune of $9.7 million (£6.3 million) on a turnover totaling $86 million (£55.7 million). Non-segregated professional client funds owed to professional clients amounted to $18.9 million (£12.2 million).
Current liabilities of Alpari UK, excluding those to professional clients, amount to $34.5 million (£22.3 million), while the total sum owed to the prime brokers of the company Citi and FXCM is approximately $11.4 million (£7.4 million), of which $8.8 million is owed to Citi and approximately $2.6 million (£1.67 million) to FXCM.
Client Funds
As the special administrator announced earlier in February, the company has been pooling the funds held in segregated accounts, together with all of the Company’s Client Money held in omnibus accounts, designated by Alpari UK as client monies and held at banks or Exchange /clearing houses.
The process is in full compliance with the rules set forth by the Financial Conduct Authority (FCA). Clients who have their funds in segregated accounts are all entitled to a share in the pool on a pro-rata basis.
While the costs of the special administration will be a factor, there is no reason to expect a major dilution in the amount of money which the clients of Alpari UK will be able to receive after the process of special administration is complete.
According to KPMG, “Until the overall total of claims against the segregated pool is established, the amount to be paid to individual clients having a claim against the segregated pool cannot be finally determined.”
Up until now, KPMG has identified balances totaling approximately $99.3 million held in designated client money or trust accounts on the date of appointment. So far, $99.6 million has been repatriated to the special administration estate and is held in client money trust bank accounts. A balance of $1.3 million has yet to be repatriated.
According to the data provided by KPMG, the difference between the balance on appointment and realized is due to exchange rate differences and interest accrued.
KMPG Compensation
The main dilution to the client fund claims is likely to come from the compensation charges which KPMG will receive as special administrator. As of the 13th of February 2015, the company has incurred costs of £1,921,160. These represent 4,144 hours at an average rate of £464 per hour.
Further charges are likely, and may lead to about 10% of client funds going for compensation, however, all deposits of up to £50,000 which are held at Alpari UK are being insured under the U.K. Financial Services Compensation Scheme, hence clients who have deposits below this threshold should receive their money back in full.
It’s been over a month since the bankruptcy procedure for Alpari UK was triggered, prompting a series of actions by the special administrator appointed for the case, KPMG. The company has been collecting information about client balances after the opened positions of the clients were closed on the 16th of January in the aftermath of the Swiss National Bank shock.
According to the document released by KPMG, Alpari UK had already been in the negative for the year ending on December 31st, 2013, when it suffered losses to the tune of $9.7 million (£6.3 million) on a turnover totaling $86 million (£55.7 million). Non-segregated professional client funds owed to professional clients amounted to $18.9 million (£12.2 million).
Current liabilities of Alpari UK, excluding those to professional clients, amount to $34.5 million (£22.3 million), while the total sum owed to the prime brokers of the company Citi and FXCM is approximately $11.4 million (£7.4 million), of which $8.8 million is owed to Citi and approximately $2.6 million (£1.67 million) to FXCM.
Client Funds
As the special administrator announced earlier in February, the company has been pooling the funds held in segregated accounts, together with all of the Company’s Client Money held in omnibus accounts, designated by Alpari UK as client monies and held at banks or Exchange /clearing houses.
The process is in full compliance with the rules set forth by the Financial Conduct Authority (FCA). Clients who have their funds in segregated accounts are all entitled to a share in the pool on a pro-rata basis.
While the costs of the special administration will be a factor, there is no reason to expect a major dilution in the amount of money which the clients of Alpari UK will be able to receive after the process of special administration is complete.
According to KPMG, “Until the overall total of claims against the segregated pool is established, the amount to be paid to individual clients having a claim against the segregated pool cannot be finally determined.”
Up until now, KPMG has identified balances totaling approximately $99.3 million held in designated client money or trust accounts on the date of appointment. So far, $99.6 million has been repatriated to the special administration estate and is held in client money trust bank accounts. A balance of $1.3 million has yet to be repatriated.
According to the data provided by KPMG, the difference between the balance on appointment and realized is due to exchange rate differences and interest accrued.
KMPG Compensation
The main dilution to the client fund claims is likely to come from the compensation charges which KPMG will receive as special administrator. As of the 13th of February 2015, the company has incurred costs of £1,921,160. These represent 4,144 hours at an average rate of £464 per hour.
Further charges are likely, and may lead to about 10% of client funds going for compensation, however, all deposits of up to £50,000 which are held at Alpari UK are being insured under the U.K. Financial Services Compensation Scheme, hence clients who have deposits below this threshold should receive their money back in full.
Interactive Brokers Posts Strong April Metrics, Daily Average Revenue Trades Soar 33%
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
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#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
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#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
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#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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