In July, AFX told the FCA it held £7.8 million in client money, whereas in August, the company said there was only £458,697 held in their UK bank accounts.
There is little positive news for clients of AFX in the report. The document reveals a heavy shortfall in client money.
Information provided by AFX to the Financial Conduct Authority on July 23, 2019, indicated that the company held £7.8 million in client money with 1,025 live customers. On August 12, 2019, the company notified the FCA that there was only £458,697 held in their UK bank accounts. Thus, there is a deficit of more than £7.3 million.
Since their appointment, the administrators have sought the assistance of the directors of AFX but requests for important information to assist the administrators remain outstanding.
Despite attempts to obtain information from CySEC in respect of the funds held in AFX Capital Markets’ account, CySEC has not provided any information in this matter, as they are still carrying out there own investigations. The suspension of the CIF license of AFX Capital Markets remains in place and is not expected to be lifted in the immediate future.
The administrators note that, at present, it is not possible to give precise outcome to clients as the investigations are still ongoing, and the pursuit of the recovery of client money continues.
The administrators have outlined the objectives of the special administration, including:
ensuring that client money are returned as soon as practicable;
either rescue the company or wind it up in the best interest of creditors;
that the administrators realise the remaining assets of the company in pursuit of the objectives of the special administration;
that, once the objectives of the special administration have been fulfilled, the administrators seek to conclude the case either: (i) by filing notices that the company no longer holds client assets and dissolving the company without any further recourse to the creditors or clients of the company; or (ii) put forward proposals for a company voluntary arrangement.
A meeting of clients and creditors will be held on November 5, 2019. More information may be found in this Letter.
AFX Markets Limited is a UK registered company that has been authorised by the FCA since May 2012. AFX Markets acted as broker for customers trading on its online trading platforms (ww.afxgroup.com and www.stofs.co.uk), principally in foreign exchange and contracts for difference products. Since the Cypriot regulator CySEC announced the suspension of AFX’s license, AFX’s website has gone black, as FinanceFeeds reported.