Following the beginning of the repayment process to clients of Alpari UK by the U.K. Financial Services Compensation Scheme (FSCS), the special administrator appointed to manage the bankruptcy of the broker, KPMG, has received a number of complaints from customers unhappy with the gap between their claims and the actual amounts awarded as compensation.
A communique issued by KPMG has shed light on matters some customers of Alpari UK might be experiencing. Due to the bankruptcy laws under which the procedure is being carried out, all of the accounts automatically pooled into the client money pool are being transferred into U.S. dollars.
As a result, some of the broker’s former clients have received different amounts to those agreed upon after confirming their claim to the client money pool.
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The law under which the client money pool is managed requires that the exchange rate of the money transfers corresponds to the spot exchange rate of 02:45 PM GMT on January 19th, 2015.
Since a number of clients have assigned their claims to be repaid into their bank accounts denominated in a different currency, they are being additionally charged by their respective banks.
The U.K. FSCS has decided that all claims are to be repaid in U.S. dollars in order to simplify the process, however, when a bank transfer is received by a client in a different currency from that of the destination account, additional fees are charged.