18 March, AtoZForex.com, Lagos — The drama of Alpari UK’s client settlement case continues, although there have been significant progress made. The meeting between clients of the defunct broker and its creditors held last week, saw a decision that a creditors committee needed to be formed.
The special administrators have again released an update to this effect, as regards issues concerning; Account validation, Account consolidation, Prompt settlement discounts, currency conversion, CCI Legal Services Limited (“CCI Legal”) as Alpari begins clamp-down on negative balance accounts.
Account validation: They stated that the contact will be made to the first round of clients who incurred negative balances, those of whose information has been verified. Therefore, excluding clients that had open CHF trades after 09.00 GMT on Thursday 15 January 2015.
Account consolidation: As stated in the report, clients who held more than one account with the Company, all these accounts have been consolidated to arrive at a single net balance per individual. Therefore, clients will only be eligible to receive and request a demand for one amount, which will reflect the final aggregated balance of all accounts they held with the Company.
CCI Legal Services Limited (“CCI Legal”): Furthermore, the Joint Special Administrators have seek the services of CCI Legal to help in the debt recovery process from clients with negative balances. From the report, this particular matter has been stated as follow;
“Please accept this notice as confirmation that CCI Legal are formally authorised to act on behalf of the Company and the Joint Special Administrators and to accept payments due to the Company. CCI Legal will contact clients directly. You should raise any questions or queries with them in the first instance and they will liaise with the Company and the Joint Special Administrators as appropriate.”
In coherence, this report and announcement follow the previous news of UK’s Financial Services Compensation Scheme, clarifying that it has been working closely with Alpari UK’s Joint Special Administrators (KPMG) over the settlement procedure of client funds. Accordingly, the FSCS has executed an independent investigation into the nature of Alpari UK’s business and therefore deems it fit that some clients will be eligible for compensation according to the rules of the scheme.
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