Clients of Bankrupt LQD Markets to Claim $4 Mln from UK FSCS
- The insurance scheme is likely to begin compensating clients of the bankrupt brokerage after months of uncertainty
The saga around the 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 deficit at FCA regulated LQD Markets is likely to conclude soon after a number of setbacks and unexpected client funds deficits have been identified. The brokerage filed for Bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term protection after the Swiss National Bank turmoil in January and its special administrators have identified substantial amounts missing from the company.
While the brokerage was on the verge of being saved, another setback allegedly related to a technical issue has caused a massive loss which abruptly put an end to negotiations with prospective investors.
The special administrators appointed on the case of LQD Markets from Baker Tilly have established that a total of 396 clients have client money claims totaling almost $4 million. At the same time, the bankruptcy proceedings established a deficit of client funds totaling almost $2.8 million back in March.
Half a year after clients have been asked to submit their claims to the special administrators, the endgame is near as the UK Financial Services Compensation Scheme (FSCS) is stepping in to reimburse customers of the failed broker.
The process has been additionally delayed after the initial proposal made by Baker Tilly for handling the bankruptcy was rejected by creditors with £826 worth of votes. The setback was eliminated after a second vote was called.
Currently, clients of LQD Markets are awaiting for the FSCS to contact them after an initial confirmation of client money claims has been concluded with the special administrator. According to an announcement made by the deposit insurance scheme, those clients who fall under the guaranteed amount of £50,000 will be contacted shortly.
Clients who have been holding balances larger than £50,000 at the brokerage are unlikely to recover any additional funds due to the massive gap in the client money pool. The latest special administrator's report states that no progress on recovering post-SNB negative balances has been made.
The saga around the 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 deficit at FCA regulated LQD Markets is likely to conclude soon after a number of setbacks and unexpected client funds deficits have been identified. The brokerage filed for Bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term protection after the Swiss National Bank turmoil in January and its special administrators have identified substantial amounts missing from the company.
While the brokerage was on the verge of being saved, another setback allegedly related to a technical issue has caused a massive loss which abruptly put an end to negotiations with prospective investors.
The special administrators appointed on the case of LQD Markets from Baker Tilly have established that a total of 396 clients have client money claims totaling almost $4 million. At the same time, the bankruptcy proceedings established a deficit of client funds totaling almost $2.8 million back in March.
Half a year after clients have been asked to submit their claims to the special administrators, the endgame is near as the UK Financial Services Compensation Scheme (FSCS) is stepping in to reimburse customers of the failed broker.
The process has been additionally delayed after the initial proposal made by Baker Tilly for handling the bankruptcy was rejected by creditors with £826 worth of votes. The setback was eliminated after a second vote was called.
Currently, clients of LQD Markets are awaiting for the FSCS to contact them after an initial confirmation of client money claims has been concluded with the special administrator. According to an announcement made by the deposit insurance scheme, those clients who fall under the guaranteed amount of £50,000 will be contacted shortly.
Clients who have been holding balances larger than £50,000 at the brokerage are unlikely to recover any additional funds due to the massive gap in the client money pool. The latest special administrator's report states that no progress on recovering post-SNB negative balances has been made.