Q&As about MF Global
When will FSCS be sending out application forms?
The FSCS expects to have sent application forms to all customers before the end of February 2012. Private customers with an individual account only held with MF Global will receive application forms first, followed by corporate and trust customers with client accounts.
What should I do if I believe I have a claim against MF Global but have not received an application form from the FSCS?
If you are a private customer with an individual account only with MF Global, and you have not received an application form from the FSCS by 23 January 2012, please contact us at this time. We expect to send application forms for corporate and trust accounts by the end of February. If you have such an account, please check our website for details as to when we will be sending mailings for these accounts.
I have received an application form but I am unsure how to complete it. What should I do?
Please try to complete the form to the best of your ability, and avoid leaving any questions blank. The completed form should then be returned in the prepaid envelope provided along with any documentation that you believe is relevant to the claim.
If you have specific queries about individual questions on the form, please contact our helpline on 0800 678 1100 or 0207 741 4100 and we will be happy to help you.
I have a client account with MF Global. Am I eligible to apply for compensation, and if so, when will I receive an application form?
The FSCS expects to have sent application forms to all relevant customers before the end of February 2012. Private customers with an individual account only held with MF Global will receive application forms first. They will be followed by private customers with a joint account or both a joint account and individual account, and corporate and trust customers with client accounts.
How long will the FSCS take to process my claim?
If claimants who have returned a completed Application Form to the FSCS are found to be eligible, and have agreed a final balance with KPMG, the FSCS will seek to pay compensation as quickly as possible, in most cases within one month of receiving the information from the Special Administrators.
If I wish to make a claim as a company or a trust (rather than an individual) will the FSCS be sending me an application form?
The FSCS will be sending application forms to all customers of the firm. Private customers with an individual account only held with MF Global will receive application forms first, followed by corporate and trust customers with client accounts. We expect to send applications forms to all corporate and trust customers by the end of February.
For corporate accounts, will the FSCS be sending one application form for the whole account, or separate application forms for individual clients within that account?
We are waiting for data from KPMG about corporate accounts. Once we have received and reviewed these details, we will arrange for the relevant individuals or entities to be sent an application form.
How will my compensation be calculated, and what compensation will I receive from the FSCS?
This will be based on the account balance / information the FSCS receives from KPMG. The FSCS can pay up to £50,000 in compensation per claim.
I have some queries about the claim form supplied by KPMG, can the FSCS help me?
No, any queries regarding this application form should be directed to KPMG.
Am I able to make a claim for any short fall that may occur in the future?
The FSCS will only pay compensation once a claimant’s final loss has been established. Any customers of MF Global with open positions will not be paid compensation until those positions are closed.
What if I believe I am suffering financial hardship and need my claim to be considered urgently?
Once a claim has been made to the FSCS, if any claimants believe that the FSCS should treat their case as a priority because they are facing immediate financial hardship, they should let the FSCS know as soon as possible. Where there is immediate financial hardship, we will do what we can to accelerate the handling of the claim.
However, please note that the FSCS cannot progress claims until account balances have been determined by and received from KPMG.
In the form I have received from KPMG they have referred to an assignment of my rights to the FSCS. What is meant by this?
If the FSCS accepts a claim for compensation, under the terms of our offer of payment, a claimant will be required to assign to the FSCS all their rights in relation to their claim. This enables the FSCS to 'stand in the shoes' of investors in respect of their claim. Relying on these rights, the FSCS will seek to recover all or part of the cost of compensation in the administration.
If you have received an FSCS payment you will have assigned your rights to us. This means that any dividend you would have received from KPMG will now be paid to us.
If I receive compensation from the administrator (KPMG) can I still pursue a claim with the FSCS?
Yes you can. However, when calculating your compensation the FSCS will deduct any payments you have received from the administrator from your final compensation amount subject to a maximum of £50,000.
If I believe my losses to be more than £50,000 what should I do?
In relation to claims in respect of Investment business, the FSCS’s maximum compensation payment is £50,000 per person. However, if the FSCS calculates your losses to be more than our £50,000 maximum, and you accept our compensation, we will pass any subsequent KPMG dividend payments back to you when we receive them until such time as you have been fully compensated for your full loss, in accordance with the procedures set out in our rules. The FSCS will then recover any additional KPMG payments to offset the cost of the compensation we previously paid to you.
Accordingly, if you expect your losses to be over £50,000 you can either choose to:
a) accept the FSCS compensation first and await further KPMG dividend payments to be paid to us and then passed on to you, as appropriate, or
b) accept the KPMG payments first and then make a claim to FSCS at a later date for any outstanding losses you may have.
If you choose a) please complete and return the FSCS application form. If you choose b) please fill out the form sent with you application form to indicate that you do not wish to make a claim to FSCS at this time but pursue your claim through KPMG first. Please then return the form using the envelope provided. The full FSCS application form should be returned at a later date for claims for outstanding losses you have made.
What if I held money accounts in US Dollars (USD)?
To ensure money is returned to customers as soon as practicable FSCS is making all compensation payments in British Pounds (GBP). Any US dollar (USD) currency accounts will be converted to GBP using a conversion rate of £1 to US$1.5945. This was the published exchange rate when the firm was placed into Special Administration.
Why has KPMG issued me two closing balances?
In some cases where positions were liquidated after 31 October 2011, the client will receive two statements:
- One in which the balance reflects the value of open positions at their respective market values as at close of business on 31 October 2011; and
- The other which provides a final balance which reflects the value of the positions once closed out.
Where transactions occurred after 31 October 2011 (i.e. liquidations of open positions), you have been asked to agree the balance as at 31 October 2011 and also to agree the final balance after all subsequent transactions are accounted for. Provided you agree to both balances, interim distributions made by KPMG and payment by FSCS will be based on the lower of these two balances.