On January 16, Alpari UK, a forex trading giant boasting more than 100,000 clients, was forced to announce its insolvency as a result of the industry-wide crisis spurred by the SNB. Shortly after, LQD Markets, a mid-size UK-based broker, shared a similar fate and was placed under special administration.
Judging by the emails and comments Forex Magnates has been getting since, it seems former clients of the now-defunct brokers have more questions than either firm’s special administrator could hope to answer.
Both special administrators–Baker Tilly Restructuring & Recovery LLP for LQD Markets and KPMG for Alpari UK–have gone about the customer claims procedures in their own unique ways.
KPMG has launched a claims portal site, where customers of Alpari UK could submit their claims by email. After over 100,000 individuals gained access to the claims portal it was published that most clients could claim their funds via the UK Financial Services Compensation Scheme (FSCS). Papers uploaded to the administrator’s designated website have also revealed that among the broker’s debtors are FXCM and Citibank.
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Baker Tilly Restructuring & Recovery, on the other hand, opted for a much more conservative method, whereby customers could simply send the special administrator an email detailing the amount of money owed, account statements and any other supporting documentation.
But apart from basic Q&A documentation, neither firm has succeeded in quelling customer concern. On these grounds Forex Magnates has invited David Leibowitz, partner at the international law firm Berwin Leighton Paisner LLP and an insolvency litigation specialist, to answer your questions.
Handling a broad range of restructuring and insolvency assignments on behalf of UK and international companies, David will be able to shed real light on some of the most pressing issues concerning clients, suppliers and debtors in regards to the insolvency process.
Submit your questions via the comments section below and Forex Magnates will get them answered.