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.
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.
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.
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.
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