KPMG informs regarding distribution of client money of Alpari (Uk) Limited 

KPMG has issues an announcement to inform regarding the application to court for directions prescribing a client money distribution proceedings for Alpari (UK) Limited in Special Administration.

Below is the announcement as it was published:

On 27 July 2016, the Joint Special Administrators applied to the High Court seeking directions for the imposition of a procedure by which final distributions from the client money pool (the “CMP”) should be made (the “Client Money Distribution Application”).

The Client Money Distribution Application is required, amongst other reasons, because neither the Financial Conduct Authority’s client money rules nor the Investment Bank Special Administration Rules 2011 (the “2011 Rules”) provide a mechanism for distributing from the CMP. As such, the Joint Special Administrators (as trustee of the CMP) seek directions which, if granted, will provide a clear and fair procedure by which the final distribution from the CMP can be made.

In summary, the proposed procedure will facilitate the final distribution from, and the closure of, the CMP. Particular features of the proposed procedure include: (i) a bar date by which claims to the CMP must be submitted to be entitled to any distribution from the CMP; (ii) a de minimis threshold for CMP distributions; (iii) a procedure for rejecting claims to the CMP and a time limit for appealing such rejections; and (iv) a mechanism for the Joint Special Administrators to make distributions without reserving for certain types of claim to the CMP, including rejected claims which have not been appealed and claims which have not been submitted within the requisite time limits.

The Joint Special Administrators have filed a witness statement in support of the Client Money Distribution Application. The purpose of the witness statement is to explain to the Court what the proposed procedure is and why it is required. Copies of the Client Money Distribution Application and the witness statement can be found via the following:

• Witness Statement of Samantha Bewick dated 26 July 2016;
• Exhibit SB1 re Witness Statement of Samantha Bewick dated 26 July 2016;
• Application Notice dated 27 July 2016.

The Client Money Distribution Application is scheduled to be heard on 29 September 2016 with a time estimate of 1 to 2 hours.

Source: KPMG

 

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