Former clients of LQD Markets, having faced a tumultuous fallout in the aftermath of the Swiss National Bank (SNB) upheaval this past January, have received welcome news Wednesday, culminating in an announcement that they are protected by the UK’s Financial Services Compensation Scheme (FSCS), according to a Baker Tilly statement.
The resolution for former LQD clients has picked up pace following a second push that ultimately helped overcome a key bankruptcy hurdle earlier this year. An earlier attempt saw the company’s creditors reject the bankruptcy proposal by special administrator Baker Tilly.
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At the second vote in April, 76% of the creditors funds voted in favor of the bankruptcy resolution proposal totaling $374,754 (£239,582), with the remaining $86,525 (£55,316) voting against.
As a result of a recent ruling however, customers found they fall within the mantle of UK law that protects them under the FSCS. More specifically, the FSCS will pay compensation to eligible claimants up to a maximum of $78,210 (£50,000) per person.
Additionally, customers with accounts that have cash only balances have an additional caveat, as they must agree to their account balances with specially appointed administrators. Consequently, over the next few weeks, FSCS will be contacting customers who have agreed to their account balances, whereby paying compensation according to the agreed upon balances.