AtoZForex.com Lagos — An announcement was made yesterday that ETX Capital had successfully received the first Financial Services Compensation Scheme payments. The transfer was made last month, with all of the relevant clients able to access their funds instantly.
As regards the Alpari FSCS compensation payment, other clients have also been sent cash to their designated bank accounts. After the first tranche of payment settlement to clients who had assigned their claims to FSCS, it was observed that many customers are unclear as to why the amount received nominated bank account defers from the agreed claims on the claims portal with the Joint Special Administrators. The FSCS has therefore taken steps to clarify the matter by explaining the reason for the discrepancy.
The function of the claims portal is to enable clients to agree the balance of their individual account(s), to state their money entitlement and their contractual claim amount. It was stated in the claims portal that the denomination of the Client Money Pool (“CMP”) is USD, hence, clients will be settled in this currency. Accounts domiciled in a different currency will be converted to USD at the spot rate prevailing at the time of the appointment of the Joint Special Administrators, which is 2.45 pm GMT, on 19 January 2015. Therefore clients will be paid in dollars to ensure uniformity.
The FSCS boldly clarified that; “Please note, that any amount recovered from the CMP under your client money entitlement would reduce the value of your contractual claim by an equivalent amount. As a result you cannot recover both the full amount of your client money entitlement and the full amount of your contractual claim.”
They also clarified that the higher of a clients’ client money entitlement or contractual claim will be paid as compensation, but the currency remains in dollars. Deductible amount in terms of bank charges and processing fees may also account for the reduction in the amount received. Thereafter, they concluded by advising that: “If clients are concerned about the amount received, we suggest that those clients should contact their bank and confirm with them the amount in USD that was received. This amount will agree to the values that were agreed in the Claims Portal, as long as a clients’ claim is less than £50,000.”