FSCS Revives Compensation Hopes for AFX Markets’ Clients
- FSCS completed its initial review into the activities of the firm and will shortly contact clients to submit their claims.
Investors, who lost more than £7million in the AFX Markets’ collapse, were given fresh hope today as Britain’s lifeboat system said they may qualify to receive compensation. This becomes clear from the latest update posted today by the Financial Services Compensation Scheme (FSCS) into the matter.
FSCS says it completed its initial review into the activities of the firm and will shortly contact clients of AFX Markets Ltd to submit claims via an online claims service.
“Owing to the complexity of the AFX Markets failure we will review claims on a case-by-case basis. Also, customers are likely to be asked to complete a supplementary form in relation to AFX,” the FSCS said.
AFX has been ordered by regulators in Cyprus and the UK to cease any activities that would involve releasing 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 and securing its books and records for inspection.
Except for the investor compensation schemes in both the UK and Cyprus, there is little to no good news for the clients of both brands, the UK firm and the Cypriot arm of AFX Capital Markets Ltd.
The special administrators of AFX Markets disclosed to the regulators that the company was in terrible financial difficulty and that it had a heavy shortfall in client money of more than £7.3 million.
The watchdogs previously identified AFX’s lack of necessary safeguard procedures to protect client assets and raised concerns about its ability to hold sufficient funds in its coffers to settle obligations.
Moreover, AFX’s collapse was expected as it had problems earlier with its UK operations. In 2019, the British watchdog confirmed the appointment of special administrators at the AFX Markets, which was ordered to cease its trading activities after the FCA found serious problems in its operations.
A month earlier, CySEC suspended AFX Capital Markets Ltd, which was fined by the Cypriot regulator in 2017 after they broke another law regarding misleading information. Additionally, this suspension applied to AFX-owned subsidiary STO, which uses the same authorization (DI87-05).
AFX Group is the second-largest European subsidiary of AFX Markets, and according to reports it submitted to the FCA some 1200 client accounts were holding assets worth £7.8 million with the company.
Investors, who lost more than £7million in the AFX Markets’ collapse, were given fresh hope today as Britain’s lifeboat system said they may qualify to receive compensation. This becomes clear from the latest update posted today by the Financial Services Compensation Scheme (FSCS) into the matter.
FSCS says it completed its initial review into the activities of the firm and will shortly contact clients of AFX Markets Ltd to submit claims via an online claims service.
“Owing to the complexity of the AFX Markets failure we will review claims on a case-by-case basis. Also, customers are likely to be asked to complete a supplementary form in relation to AFX,” the FSCS said.
AFX has been ordered by regulators in Cyprus and the UK to cease any activities that would involve releasing 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 and securing its books and records for inspection.
Except for the investor compensation schemes in both the UK and Cyprus, there is little to no good news for the clients of both brands, the UK firm and the Cypriot arm of AFX Capital Markets Ltd.
The special administrators of AFX Markets disclosed to the regulators that the company was in terrible financial difficulty and that it had a heavy shortfall in client money of more than £7.3 million.
The watchdogs previously identified AFX’s lack of necessary safeguard procedures to protect client assets and raised concerns about its ability to hold sufficient funds in its coffers to settle obligations.
Moreover, AFX’s collapse was expected as it had problems earlier with its UK operations. In 2019, the British watchdog confirmed the appointment of special administrators at the AFX Markets, which was ordered to cease its trading activities after the FCA found serious problems in its operations.
A month earlier, CySEC suspended AFX Capital Markets Ltd, which was fined by the Cypriot regulator in 2017 after they broke another law regarding misleading information. Additionally, this suspension applied to AFX-owned subsidiary STO, which uses the same authorization (DI87-05).
AFX Group is the second-largest European subsidiary of AFX Markets, and according to reports it submitted to the FCA some 1200 client accounts were holding assets worth £7.8 million with the company.