Key Insights
- The UK’s FSCS is now accepting claims from clients of FCI Markets, a broker that entered voluntary liquidation in March 2023.
- FSCS is requesting additional documentation from clients due to limited information from the liquidators.
- Claims will not be immediately assessed as FSCS continues to investigate whether FCI meets qualifying conditions for compensation.
LONDON (MarketsXplora) – The UK Financial Services Compensation Scheme (FSCS) announced on Friday it is now accepting claims from clients of Foreign Currency Innovations Ltd, which traded as FCI Markets, following the broker’s entry into voluntary liquidation in March.
FCI Markets, an FCA-regulated entity since July 2014 offering contracts for differences (CFDs), rolling spot currency contracts and spread bets, appointed James Patchett of Turpin Baker Armstrong and Stephen Katz of Begbies Traynor as joint liquidators on March 10.
The FSCS, which has been collaborating with the liquidators to ascertain potential valid claims, said it has opened its online claims service despite limited documentation from the defunct broker.
“We’re calling on customers to furnish additional evidence to facilitate claim processing,” an FSCS representative told MarketsXplora. “This includes investment contracts, bank statements, annual reports, and any complaints lodged with FCI.”
Liquidated broker FCI Markets under FSCS investigation
The compensation body also requested professional clients who believe they were misclassified as retail to provide relevant questionnaires and explanations for their potential miscategorisation.
However, the FSCS cautioned that while claims are being accepted, they will not be immediately assessed as investigations into whether the firm meets qualifying conditions for compensation are ongoing.
“Our inquiry is still in its nascent stages and may require considerable time,” the FSCS spokesperson added. “We’ve established a dedicated webpage to keep claimants abreast of developments.”
The FSCS can pay compensation for financial loss arising from the actions of regulated firms, covering investments up to £85,000 ($107,000) per eligible person, per firm.
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