Alpari UK Insolvency Does Not Affect Other Alpari Companies

PUBLICATION DATE: JANUARY 16, 2015

Dear Clients!
On January 15, 2015 the Swiss National Bank unexpectedly removed the upper boundary on CHF against EUR. These measures triggered a sharp rise of Switzerland’s franc and resulted in exceptional volatility in the Forex market. As a result many forex brokers faced financial problems. In particular on January 16, 2015 Alpari UK announced that it entered into insolvency.

The company can not meet the minimum capitalization requirements of the FCA (UK) any more. In the nearest future external control will be enabled and a program of financial recovery will start.
Alpari UK is a separate legal entity operating under the Alpari brand and its financial situation does not affect other Alpari companies.
In particular, Alpari Limited (Saint Vincent), Alpari Limited (Belize) and Alpari International Limited (Mauritius) have recently changed their margin requirements for EURCHF. Due to these measures these companies do not face any financial difficulties and provide their services in full.

Best Regards,
Alpari

Source: http://alpari-forex.com/en/company/n.../16/alpari_uk/

Hello!
Can somebody explain me what will happen now with the customers/traders/ money after Alpari went on insolvency?
Are they covered or are completely lost?
Thank you

sounds like there customers was heavily trading CHF pairs using large amount of leverage and when news broke out on chf they couldn't honor there s/l at there price causing there account to be blown out more then there customers had in there account so Alpari had to cover the loses

Important announcement

Submitted on Fri, 16/01/2015 - 12:00;

The recent move on the Swiss franc caused by the Swiss National Bank’s unexpected policy reversal of capping the Swiss franc against the euro has resulted in exceptional volatility and extreme lack of liquidity. This has resulted in the majority of clients sustaining losses which has exceeded their account equity. Where a client cannot cover this loss, it is passed on to us.

This has forced Alpari (UK) Limited to confirm today, 16/01/15, that it has entered into insolvency. Retail client funds continue to be segregated in accordance with FCA rules.

All those who used Alpari UK, including me, received the email below. This means the company went bankrupt. Fortunately all client funds were segregated so our money is safe as long as the amount does not exceed GBP 70,000. Of course this will not apply to traders who had short CHF positions and blew their accounts as a result. The problem is that it will probably take quite some time before we are reimbursed the amounts due.



Subject: Alpari (UK) Limited (in special administration)

From: [email protected]k Today at 2:32 PM

To: me

Dear Sir/Madam

Alpari (UK) Limited - in special administration (“the Company”)
Joint Special Administrators – Richard Heis, Samantha Bewick and Mark Firmin

I was appointed Joint Special Administrator of the Company together with Samantha Bewick and Mark Firmin on 19 January 2015.

In accordance with Rule 51 of The Investment Bank Special Administration (England & Wales) Rules 2011, I refer you to www.kpmg.com/uk/alpari where you can view Form 2.12B, notice of special administrators’ appointment.

The Company’s affairs are being examined by the Joint Special Administrators who will write to all clients who have a claim setting out their proposals for achieving the purpose of the special administration within the next 8 weeks.Any urgent communications should be emailed to [email protected]. Alternatively please monitor the website which will be updated as more information becomes available.

The Company traded under the following trading styles: Alpari FX, AlpariFX, AUK, Quantum FX and QuantumFX (this list is not exhaustive).

If you believe you are not a current client as you consider you are not owed any money, or do not wish to make a claim for monies owed, kindly confirm this by email to [email protected] or in writing to Alpari (UK) Limited (in special administration), 8 Salisbury Square, London, EC4Y 8BB. On receipt of such an email/letter your contact details will be removed from the client list and no further correspondence concerning the Company will be sent to you.

Pursuant to rule 296 of the Rules, where the Special Administrators give, send or deliver any notice or other document to you by electronic means, you may request a hard copy of that notice or document. If you choose to request a hard copy, the Special Administrators must send it to you within 5 business days of receipt of the request.

Yours faithfully for Alpari (UK) Limited

Richard Heis
Joint Special Administrator


Mark Granville Firmin, Richard Heis and Samantha Rae Bewick were appointed as joint special administrators of Alpari (UK) Limited on 19 January 2015.

The affairs, business and property of Alpari (UK) Limited are being managed by the joint special administrators who contract as agents of Alpari (UK) Limited without personal liability.

Mark Granville Firmin, Richard Heis and Samantha Rae Bewick are authorised to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales.

Alpari (UK) Limited is authorised and regulated by the Financial Conduct Authority. FCA reference number 448002. Registered in England No. 05284142. Registered Office: 8 Salisbury Square, London, EC4Y 8BB.