Global Trader Europe Limited
21st April 2009
Last updated 21 April 2009
Global Trader Europe Limited went into administration on 15 February 2008 and was subsequently placed into liquidation on 17 June 2008. Stephen Cork and Joanne Milner of Smith & Williamson are liquidators of this firm.
Liquidators’ distribution to creditors
We understand that the Liquidators have verified claims on behalf of clients of Global Trader Europe Limited and are due to make an interim distribution to creditors shortly. The Liquidators should be contacting creditors separately regarding this matter.
Now that claim amounts are confirmed, the FSCS expects to be in a position to start compensating eligible claimants following the payment of the interim dividend, expected to be made in May. Global Trader Europe Limited has not yet been declared in default by the FSCS, although we expect a decision on the default declaration to be made once the interim distribution has been paid.
How the FSCS will assess claims
The FSCS will assess claims in accordance with our rules. Our rules (the COMP Rules) are written by the Financial Services Authority (FSA), and form part of the FSA Handbook. They can be found under Redress, Compensation on the FSA's website. The COMP Rules specify which types of claim are eligible for compensation, and limit how much compensation the FSCS is able to pay. For example, we can only accept claims from individuals and small companies. Overseas financial services institutions and large companies are excluded. Full details of who is eligible to benefit from FSCS protection can be found in subsection 4.2 of the COMP Rules.
Information provided by the Liquidators will be used to confirm the value of claims. We will also account for any dividend payments that a claimant has already received in calculating any compensation payable.
Assignment of rights
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 against Global Trader Europe Limited and any relevant third parties. 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 from the liquidation estate. This means that the FSCS will hold the right to any further dividend distribution from the Liquidation in respect of claims for which it has taken an assignment.
In the event any further dividend is paid, the FSCS will seek to ensure that no investor is disadvantaged as a consequence of accepting the FSCS’s offer rather than waiting for the future dividend to be paid first. This means that the FSCS may forward an investor some or all of any dividend recovered by the FSCS in respect of their claim, if the claim has not otherwise been paid in full by the FSCS.
Further details of the assignment of rights can be found in subsection 7.2 of the COMP Rules.
How quickly will FSCS process claims?
We will endeavour to issue a decision on claims as quickly as possible, and hopefully within three months of when Global Trader Europe Limited is declared in default. If it becomes apparent that we will not be able to deal with a claim within this timescale, we will let the claimant know.