UK FSCS Is Open to Compensation Claims Against AFX Markets

The UK Financial Services Compensation Scheme (FSCS) has provided an update to customers of AFX Markets, a forex and CFDs broker that was placed in Special Administration following a court application made by the FCA on 27 August 2019.

In its latest update, the Scheme says it has agreed on a process with the Joint Special Administrators (JSAs) to review customer claims and pay compensation on eligible claims.

FSCS highlighted that it will only be able to pay compensation to customer who were clients of AFX Markets Ltd. The JSAs will determine whether a customer was a client of AFX Markets Ltd. FSCS will rely on the JSA’s judgement as to whether a customer was a client of AFX Markets Ltd.

“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.

In addition, the Scheme pointed out that it will not be able to pay compensation in cases where customers that customers have lost money as a result of dealing with AFX Capital Markets Ltd, a Cypriot firm under the same group with AFX Markets.

This week, FSCF has declared 12 firms in default from 1 August to 30 September 2021, which is more than the figure of the prior two months. People who have dealt with any of the 12 financial services firms and believe they are owed money as a result, can now make a claim to the FSCS.