1) My client money claim is higher as at the PPE (being 31st October 2011) than at hindsight (being the date any open positions were closed out, or in the case of any LME contracts the 1st November 2011).
1a) On what basis will the dividend due to be paid week ending 23 August 2012 be paid?
The payment being made during the week ending 23 August 2013 will be based on the lower or your two client money claim values i.e. the lower of your PPE or hindsight valuation.
1b) Now that we have the judgement on the Shortfall Application (“Shortfall Judgment”), and it does not impact the Hindsight Judgment, will I receive a top up payment from the CMP based on the Hindsight Judgment and if so when can I expect to receive this?
If the Shortfall Judgment is not appealed then top up payments from the CMP will be made to all those clients whose Client Money claim is higher as at the PPE than at hindsight. The Administrators will make this payment as soon as possible after 6 September 2013 (the last date for appeal of the Shortfall Judgment) and by 20 September 2013 at the latest for all those clients with agreed claims.
2) I have assigned my claim to the Financial Services Compensation Scheme (“FSCS”). On what basis will the FSCS be compensating clients?
The Administrators are not aware of how the FSCS intends to compensate clients as a result of the Shortfall Judgment, but intend to discuss the Judgment with them as soon as possible and once a decision has been made will post an update on this website.
3) When will I be advised as to what unsecured claims I may have arising from the Shortfall Judgment, and will I be entitled to receive dividends from the unsecured estate on these claims immediately?
The Administrators are considering the impact of the Shortfall Judgment and how to go about calculating the provable claims that clients may have arising from it. There are a number of uncertainties at present, including whether any of the as yet unresolved client money claims will ultimately be admitted as client money claims (the admission of additional claims, when money was not in fact segregated for the clients in question, would impact the value of any Shortfall Claims). The Administrators will provide a further update about this in due course.
4) Do the Administrators intend to announce an increased dividend to the Client money or General Unsecured estates a result of the Shortfall Judgment? If so, when do they expect to be able to do this?
The Shortfall Judgement should not impact the distributions payable from the client money pool. Instead, its impact is on the value of claims against the general estate.
Subject to certain other issues, the Shortfall Judgment is likely to enable the Administrators to increase the dividend payable to general unsecured creditors. The Administrators will take this into account when considering whether, and if so when, to pay a further interim dividend to general unsecured creditors. Further updates will be posted on this website in due course.
MF Global UK special administration
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.