An update by the special administrators of the Alpari UK bankruptcy, KPMG, reveals that Alpari UK clients will soon be receiving their insured deposits with the bankrupt brokerage. The UK Financial Services Compensation Scheme (FSCS) has confirmed that all investment products offered by Alpari (UK) Limited (Alpari) are protected under the deposit insurance scheme.
As revealed by the special administrators in an interview with Finance Magnates earlier this month, all clients of Alpari UK who did not chose the FSCS for their claims may change their decision.
After discussions between KPMG and the FSCS, clients will be able to claim compensation from FSCS, should they wish to do so, directly via the online Claims Portal. In previous messages, the joint special administrators stated that FSCS will be contacting those clients. Apparently the convenience of using the claims portal will also quicken the insured claims distribution process.
FSCS will process a claim for compensation once submitted via the Alpari UK claims portal
Claimants who want to switch their decision, have to apply for compensation from the FSCS via the Alpari claims portal devised by KPMG. The FSCS will process a claim for compensation once it has been submitted via the claims portal.
Accounts held in joint names or in a trust or corporate entity will be required to complete an FSCS claims form.
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Since all distributions by KPMG are made in U.S. dollars, the FSCS will also be paying compensation in the same currency. Should a conversion be required from British pounds, the exchange rate applied will be the Bank of England reference figure on the 19th of January, which is 1.5158 U.S. dollars per British pound.
In accordance with FSCS rules, the compensation limit for investment claims is up to $75,790 or £50,000 per person. All persons claiming from the FSCS will be required to assign their legal rights in relation to their Alpari UK claim to the FSCS.
Provided that the institution recovers funds in the Alpari special administration, there will be further payments to the claimants whose account balances surpassed the FSCS insured deposits sum.
In the latest announcement by KPMG, the company explains that it will shortly be releasing a new functionality in the Alpari UK clients claims portal. The update is related to compensation from FSCS and the option of having distributions from the FSCS to be paid directly to an ETX Capital trading account if a client so chooses.
KPMG also explains that the timing of any payments or distributions will be the same irrespective of whether clients choose to have them paid to an ETX account or to any other nominated account.
A client’s prior indication of their intentions regarding FSCS compensation does not preclude or otherwise affect a client’s ability to now seek compensation from FSCS via the online Claims Portal.
The FSCS has confirmed that compensation payments will be made in USD and into the bank account provided by clients in the Claims Portal.