LQD Markets (UK) limited has appointed Baker Tilly Restructuring & Recovery LLP as special administrator, the accountant company has informed. While the appointment took place only yesterday and clients have a long way ahead of them until all claims are settled, the company’s announcements portray a bleak future for traders who were not able to withdraw their funds so far.
The FCA regulated broker announced last week it is initiating bankruptcy proceeding, after being hit by the SNB’s floor drop on January 15.
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Forex Magnates has revealed that the company’s shutdown was caused after it suffered losses of over a million dollars, as a dwindling client base forced it to rely on a sole fund, whose owners remain unknown. Today the FCA has announced that the company had over 400 clients.
The Frequently Asked Questions form provided by the joint special administrators reveals that while clients funds are segregated, complying with regulatory requirements, LQD Markets “appear to have a deficit on client’s money”.
“The Joint Special Administrators will report further on the size of the deficit when accounts have been reconciled. This is a key priority of the Joint Special Administrators,” it was added. The FCA has reiterated this statement, saying that “the initial view in the early stages” is of a deficit in client’s money.