United Kingdom

Details

  • Service: Advisory, Transactions & Restructuring
  • Industry: Financial Services
  • Type: Business and industry issue
  • Date: 14/12/2011

MF Global Client and Creditor claims forms 

This update is to let you know that the claim forms in relation to the distribution process, together with the associated proxy forms relevant to voting  at the initial meeting of clients and creditors on 9 January 2012 (the “Initial Meeting”) are now available for download by clicking on the links below.

 

The rules and regulations governing the special administration process distinguish between “clients” and “creditors” as potential claimants against the company. You will therefore find two separate claim forms and two separate proxy forms available for download below. Please refer to the guidance notes and the flow chart which accompany these claim forms for further information to assist you with determining if you are a client and/or a creditor of the company and for guidance on which form(s) to complete. 

 

 

Please note that there are currently two processes that we are progressing in tandem:

 

  • 1. One process in relation to the Initial Meeting whereby both clients and creditors’ will be asked to vote on the Special Administrators’ proposals and to consider the appointment and composition of any creditors’ committee; and
  • 2. The claims process.

 

The claim forms below have been designed for both voting and claims purposes and you will note that you will be able to elect whether your submission should be used for voting purposes at the Initial Meeting and/or your formal submission of your claim for distribution purposes.

 

All client and creditors who wish to vote at the Initial Meeting will be required to provide details of their claim against the company to the Special Administrators at the address below by 12 noon on 6 January 2012. Further if you cannot attend the initial meeting or would like to appoint someone (e.g. the chairman) to vote on your behalf, you must lodge a proxy form with the Special Administrators ahead of that meeting. Note, however, that the proxy form allows you to submit voting directions in relation to certain proposals at the Initial Meeting, in particular in relation to the Special Administrators’ proposals. Those proposals will be made available to all creditors and clients on or around 15 December 2011. We suggest that you wait to review those proposals before submitting any voting directions.

 

Please also note that we will be posting hard copies of the claim and voting (proxy) forms to all clients and creditors on or around 15 December 2011 when we notify all creditors and clients that the Special Administrators’ proposals will be made available on the website. However if you require a paper copy of the claim and/or proxy forms before then, please send an email to: mfglobalclaims@kpmg.co.uk

 

At this stage we appreciate that some clients and creditors may not know the exact value of their claim. If you are unable to determine the exact value of your claim, the Special Administrators request that you submit an estimated claim for voting purposes and submit a formal claim at a later date. Please see the Q&A section below for further information in this regard.

  

When completing your form(s), please provide as much information as possible to support your claim as this will assist us in the review of your submission.

 

If you are unable to download the PDF files below and need to update your Adobe software please go to the Adobe website http://get.adobe.com/uk/reader/.

Questions and Answers

Detailed guidance notes accompany the claim forms which will assist you with completing the forms. However, the attached PDF also provides answers to some of the common questions that customers and creditors may have. These Q&A’s are intended as guidance only in relation to the rules and regulations that govern the special administration and should not be read as a substitute for reading the rules and regulations themselves.

 

Submission of creditor claim forms and Notice of Intended Dividend

 

‪In the Special Administrators' Notice of Intended Dividend issued Pursuant to Rule 175 of the Investment Bank Special Administration (England and Wales) Rules 2011, the Special Administrators requested proof of debts for creditors to be lodged at any point up to and including 30 April 2012. A copy of this notice can be found here (PDF 416 KB). Creditors should note that their claim in the special administration of MF Global UK Limited (‘MFG UK’) is not prejudiced if their claim form is not received by this date: any claim form received after this date, subject to any bar date which the Courts may later determine, will also be considered by the Special Administrators. ‪

 

For the avoidance of doubt if you have submitted a client claim form to the Special Administrators and you have ticked the box on the form to allow the claim to be treated as a claim for distribution purposes, and the claim is subsequently determined to be a creditor claim, the Special Administrators will regard your client claim form as your formal proof of debt for your creditor claim in the special administration of MFG UK. There is no need to submit a separate creditor claim form.

 

You should note that in the circumstances outlined above, the Special Administrators will regard the date on which your client claim form was received to also be the date on which your creditor claim form was received. For example, if you submitted a client claim form on 20 March and it was subsequently determined on the 10th May to be a creditor claim, the Special Administrators will consider the date on which your creditor claim form was filed to be 20 March.

 

 

Download Q&A (PDF 99 KB) 

 

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Claim Forms

Please find the links to both claim forms below.  Please read the Q&A and guidance carefully to ensure that you complete the correct form.

 

Please note that the term "client" refers to a claimant who thinks he/she has an interest in the segregated client money pool under the FSA's client money regulations (CASS 7) or a claimant with a proprietary interest in a client asset or assets. A "creditor" may well have been a client of the firm in the ordinary sense of the word, but if he does not have a client money or client asset claim under the relevant FSA CASS rules, then he is regarded as a "creditor" for these purposes, with a claim against the unsecured estate. Accordingly, you may have claims against the company as both a creditor or a client. If this is the case, you must fill in both forms. We will be completing a verification process as and when claims forms are received in order to ensure that clients have completed the correct form(s).

 

The standard PDF will allow customers and creditors with an earlier version of Adobe PDF to download the forms, although in order to use the editable PDF customers and creditors may need to use the Adobe website link above.

 

Please note that the second form (editable PDF) allows customers to complete the claim form on your computer rather than by hand.  By completing the form on your computer and emailing this to us we will be able to log your claim details automatically rather than having to log your claim manually when it is received. You are requested to complete this form and email it back to the Special Administrators, along with a copy which you have printed off and have had signed by the client, creditor or an authorised representative thereof. You may also submit your claim by post. Please see the guidance notes for further information on how to submit your claim.

 

If you are unable to download the PDF files below or are unable to save the editable PDF, you may need to update your Adobe software to the latest version. Please go to the Adobe website http://get.adobe.com/uk/reader/.

 

 

 Standard PDF

 Editable PDF

 Client

 Click to download (PDF 252 KB)

 Click to download (PDF 841 KB)

 Creditor

 Click to download (PDF 154 KB)

 Click to download (PDF 694 KB)

 

PDF files require Adobe Reader to view

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Classification of claims as either segregated or non-segregated

Many customers of MF Global UK, including MFG Inc and some of its clients are seeking to share in the funds which were segregated on behalf of other clients.  As at 16 January 2012, the Special Administrators had received over 600 claims for entitlement to the client money pool in relation to customers of MF Global UK that had not been afforded client money protection by MF Global UK as at 31 October 2011 as well as over 100 claims for entitlement to the return of assets, where the firm’s records indicate that title to those assets had been passed to MF Global UK.

 

The Special Administrators and their team are now progressing a detailed reconciliation exercise of each claimant's claim for distribution purposes as these additional claims against the client money pool could have a material impact on the percentage of any distributions out of that pool. In order to assist the Special Administrators and their team in this exercise, you are requested (if you have not done so already) to submit any supporting evidence to substantiate why you think your claim should be classified as you assert. Supporting evidence could include, for example, your account opening documentation and communication you had with the company (contracts, emails, etc.) in respect of the type of client you are or any communication which indicates how your account(s) were being held (for example, on a segregated or a non-segregated basis).

 

The Special Administration team are continuing to review all claims received and Company information in order to finalise each parties’ classification, and intend to write to all customers who have submitted a segregated client claim where Company information maintains that they are not segregated. On 31 January 2012 the Special Administrators commenced the process of writing to all these affected customers with the results of their analysis to date and the status of their claims.  The ultimate classification of any entitlement to the client money pool is only likely to be determined once the Supreme Court has ruled on Lehmans.  The Special Administrators will have calculated sufficient reserves to ensure that you will be able to take part in any interim distribution once the status of each claim has been confirmed.

Bar date for submission of claims

The Joint Special Administrators give notice, in accordance with Regulation 11 of The Investment Bank Special Administration Regulations 2011 (the “Regulations”) and under Rule 138 of The Investment Bank Special Administration (England and Wales) Rules 2011 (the “Rules”), THAT the Joint Special Administrators think it necessary in order to expedite the return of client assets to set a bar date of 17.00 hours in London on 29 February 2012 (the “Bar Date”) for the submission of:


(a)  claims to the beneficial ownership, or other form of ownership, of the client assets; or
(b)  claims of persons in relation to a security interest asserted over, or other entitlement to, those assets.


The full notice of the Bar Date is below

 

 

What is a bar date?

 
A bar date represents a deadline by which time claims in respect of client assets must be submitted. Failure to submit a claim by the bar date may prejudice a client’s ability to recover client assets.
 
Why has a bar date been set now?

 
The purpose of the bar date is to allow the Joint Special Administrators to speed up the return of client assets. In setting a bar date, the Joint Special Administrators must allow a reasonable time after notice of the special administration has been published for persons to be able to calculate and submit their claims.
 
What is the effect of a bar date? 

 
After a bar date has been set, if a claim to client assets has been agreed by them, the Joint Special Administrators may return client assets in accordance with a Distribution Plan drawn up by the Joint Special Administrators.
 
The agreement of the claim which has been submitted by the bar date will give a client good title to the asset for the purpose of its return. If you fail to submit your claim by the bar date, another claimant may acquire good title to the client assets claimed by you and there shall be no disruption to those client assets that have already been returned. In these circumstances, if MF Global UK has insufficient assets of the type claimed by you, your only remedy will be to submit a claim for the value of the client assets not returned to you.
 
What is a Distribution Plan?

 
After a bar date has been set, the Joint Special Administrators are required to prepare a Distribution Plan setting out:

 

  • the timetable for the return of each client asset;
  • to whom each asset is to be returned; and
  • how the expenses of the Joint Special Administrators incurred in the agreement and return of the client asset will be charged to each client.


The Joint Special Administrators are not entitled to return client assets sooner than three months after the bar date.
 
The Distribution Plan must be approved by the Creditors Committee and by the court and the Joint Special Administrators will not return any client asset without such approval.
 
Why does the process take so long?

 
The Joint Special Administrators will not agree claims in respect of client assets until they are satisfied that the claimant has been verified as a client of MF Global UK, that the claimant has a valid entitlement to the asset and that the asset in question is a segregated client asset in accordance FSA Client Asset rules (CASS – Client Asset Sourcebook). If they are not satisfied, the Joint Special Administrators may require clients to provide additional evidence of their claim.
 
The three month period running from the passing of the Bar Date which must elapse before client assets may be returned is a statutory requirement.
 
What do I need to do if I have a claim in respect of client assets?

 
If you have not already submitted a client claim form:
 
You must submit your claim before the bar date (17.00 hours in London on 29 February 2012) using the client claim form which is available in the Claims Forms section above. Instructions on how to complete the claim form are contained in the form. The claim must be evidenced by supporting documentation, provided together with the client claim form.
 
If you have already submitted a client claim form:
 
Unless you wish to amend your claim, a client claim form in respect of client assets does not need to be resubmitted.
 
What if I also have a claim in respect of client money?

 
The bar date does not apply to claims in respect of client money. However, we encourage all claims from clients to be submitted as soon as possible which will assist in the earlier agreement and distribution of client money.

Informal hearing before Mr Justice David Richards 3 February 2012

An informal hearing has been scheduled before Mr Justice David Richards to be held at the Rolls Building, 110 Fetter Lane, EC4 on 3 February 2012.  The purpose of the informal hearing is for the Special Administrators to update the Court as to the background to, and progress of, the special administration of MF Global UK Limited.  The Special Administrators will outline their intention to make an interim distribution of client monies.

Proxy Forms

The Special Administrators’ proposals, for which the proxy forms are provided, will be available on the website www.kpmg.co.uk/mfglobaluk on or around 15 December 2011. 

 

Please find the links to both proxy forms below.  Please read the Q&A and guidance carefully to ensure that you complete the correct form.

 

The standard PDF will allow customers and creditors with an earlier version of Adobe PDF to download the forms, although in order to use the editable PDF customers and creditors may need to use the Adobe website link above.

 

Please note that, as with the claims forms, the second form (editable PDF) allows customers and creditors to complete the proxy form on your computer rather than by hand.  By completing the form on your computer and emailing this to us we will be able to log your proxy details automatically rather than having to log your claim manually when it is received. You are requested to complete this form and email it back to the Special Administrators, along with a copy which you have printed off and have had signed by the client, creditor or an authorised representative thereof. You may also submit your proxy by post. Please see the guidance notes for further information on how to submit your proxy.

 

If you are unable to download the PDF files below or are unable to save the editable PDF, you may need to update your Adobe software to the latest version. Please go to the Adobe website http://get.adobe.com/uk/reader/.

 

 

 Standard PDF

 Editable PDF

 Client Proxy

 Click to download (PDF 38 KB) 

 Click to download (PDF 588 KB) 

 Creditor Proxy

 Click to download (PDF 38 KB)

 Click to download (PDF 588 KB) 

 

PDF files require Adobe Reader to view

Download Adobe Reader  

 

How to submit your claim form

Completed and SIGNED forms can be submitted to us by email or by post.

 

Email:    mfglobalclaims@kpmg.co.uk

 

Post:     

MF Global UK Limited (in administration)

MF Global Claims

5 Churchill Place 

Canary Wharf

London

E14 5HU

While every reasonable effort is made to ensure that the information provided on the pages of this website concerning MF Global UK Limited (in Special Administration) and its Joint Special Administrators, MF Global Overseas Limited (in Administration), MF Global UK Services Limited (in Administration) and MF Global Finance Europe Limited (in Administration) and their respective administrators  (together the "MFG UK Estate") is accurate, no guarantees for the currency or accuracy of the website or information therein are made. The pages of this website concerning the MFG UK Estate and related material (or third party information), is provided ‘as is’. It is provided without any representation or endorsement made and without warranty of any kind, whether express or implied.
 
Please be aware that the MFG UK Estate and KPMG LLP, hereby exclude all liability for any claim, loss, demands or damages of any kind whatsoever (whether such claims, loss, demands or damages were foreseeable, known or otherwise) arising out of or in connection with the use of this website or the information, content or materials included on this website, including without limitation, indirect or consequential loss or damage, loss of actual or anticipated profits, loss of revenue, loss of business, loss of opportunity, loss of anticipated savings, loss of goodwill or loss of reputation. Nothing in this disclaimer excludes or limits the Joint Special Administrators', the Joint Administrators' or MFG UK Estate's liability for fraud or fraudulent misrepresentation or any liability which may not be limited or excluded by law.
 
The use of this website and any dispute or claim arising out of or in connection with this website (including non-contractual disputes or claims) is governed by English law and you irrevocably submit to the exclusive jurisdiction of the English courts.
 

MF Global special administration

The latest updates from the special administrators of MF Global UK Limited

 

Contact information

For all non-press enquiries on MF Global UK Limited please email the following:

 

Claim queries 

mfglobalclaims@kpmg.co.uk