FSCS Urges AFX Markets Clients to Submit Compensation Claims

After 2 years under the Special Administration, the clients of failed forex and CFDs broker AFX Markets have been asked to submit their compensation claims.

“FSCS is now open to claims from customers who invested with AFX Markets Ltd,” an official announcement on Tuesday stated. “Working closely with the Joint Special Administrators (JSAs) from CG&Co, FSCS has agreed on a process with the JSAs to review customer claims and pay compensation on eligible claims.”

The UK Financial Services Compensation Scheme (FSCS) further elaborated that only clients of AFX Markets Ltd will be eligible for compensation, and the administration will determine the eligibility of clients.

“The JSAs will contact customers who are eligible to submit a claim to FSCS. They will be invited to submit a claim using the FSCS online claims service. These customers will then get further details on the claims process, and the steps they need to take,” the announcement added.

AFX Markets clients can also approach the administrators with valid documents establishing that they were clients of the failed broker.

“FSCS is also aware that some clients who have contacted the JSA with evidence of having dealt with AFX Markets Ltd are yet to receive confirmation that their evidence has been accepted. They’ve also not had an invitation to make a claim to FSCS. The JSAs are still considering submissions from many clients, and we expect further decisions and invitations to submit a claim to us to be issued in the coming weeks and months,” the FSCS noted.

A Failed Broker

FCA-regulated AFX Markets and CySEC-regulated AFX Capital Markets, the two units of the same group, had to cease activities after the regulators of the two countries revoked the licenses.

The UK administrators soon found that the broker was in terrible financial shape and had a shortfall in its clients’ funds of more than £7.3 million. The CySEC also pointed out a deficit in the broker’s client funds.

Under the FSCS, however, only the UK clients under AFX Markets will be eligible for the compensation.