MF Global Clients Receive First Payment
More than £130,000 has been paid to customers of MF Global UK Limited through the Financial Services Compensation Scheme (FSCS), with more payments expected as claimants return their applications forms enabling the FSCS to assess their claims.
Last month, the FSCS finalized the pay-out process for MF Global account holders.
The FSCS has now sent application forms for compensation to all known MF Global UK Limited account holders. Customers of the firm who have not yet done are urged to complete and return their application forms as soon as possible.
The FSCS said it cannot process claims until claimants have also agreed their balances with KPMG, the special administrators of MF Global UK Limited. Once balances have been agreed, the special administrators will provide this information to FSCS, to allow the FSCS to assess the claims and make payments to eligible claimants.
To ensure money is returned to customers as soon as practicable FSCS is making all compensation payments in British pounds (GBP), converting any US dollar balances provided by KPMG as at the date the firm failed. All payments are being made by cheque.
In some cases where positions were liquidated after 31 October 2011, customers of MF Global will receive two balances from KPMG to agree. Provided customers agree to both balances, interim distributions made by KPMG and payment by FSCS will be based on the lower of these two balances.
On February this year, the FSCS made the first interim distribution payments to those with agreed client money claims. The first wave of settlements affected up to 600 clients with estimated claims of $12 million, and another 1,300 clients with estimated claims of $19 million.
FSCS will provide any further updates on its website when it is in a position to do so.