The KPMG Administrators of defunct FX broker Alpari UK have just announced that the Financial Services Compensation Scheme (FSCS) will begin to make compensation payments from 14 May 2015. According to a previous announcement made by the FSCS, the bill for reimbursing Alpari UK clients is likely to reach £28 million ($42.7 million).
As KPMG warned beforehand, compensation payments will only be made to eligible clients who have both agreed their claims in the “Claims Portal” and chosen to assign to FSCS. The Administrators say today that the payment of compensation follows extensive discussions with the FSCS to simplify the process for claiming and being paid compensation after which KPMG developed additional functionality in the Claims Portal to allow eligible clients to assign their claim to FSCS and provide payment instructions.
Once the FSCS have confirmed which clients should have received compensation payments, those clients will receive an email to their registered trading email address from the Administrators informing them that a compensation payment has been made. It is expected that this email will be sent by 20 May 2015 to all clients who have been paid compensation in the first tranche.
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However, some clients who have agreed their claims in the Claims Portal will not be paid in the first tranche of compensation payments. According to KPMG this is due to the number of checks that need to be performed to ensure that a client can be paid, including confirmation of personal and bank account details.
The Administrators add that they and FSCS are working through these as quickly as possible and if any further information is required from individual clients, they will be in contact. If no further information is required it is envisaged that those clients will be paid in the next tranche of compensation payments.