United Kingdom

Worldspreads Limited special administration 

The latest information on the special administration of Worldspreads Limited

Worldspreads Limited (in special administration)

Jane Moriarty and Samantha Bewick of KPMG were appointed by the High Court as joint special administrators of Worldspreads Ltd, a UK based spread betting business, late on Sunday 18th March 2012. Worldspreads Limited is a wholly owned subsidiary of Worldspreads plc, a company incorporated in Dublin, Ireland.

 

This website will provide the latest updates and information from the joint special administrators.

 

Notice of proposed distribution of client money and bar date for claims

    24 June 2015

 

IMPORTANT NOTICES REGARDING DISTRIBUTION OF CLIENT MONEY AND UNSECURED DIVIDEND

 

CLIENT MONEY:

 

Notice of Order prescribing a client money distribution procedure

 

Notice of proposed distribution of client money and bar date for claims of 15 July 2015

 

This is notice that, on 10 June 2015, the English High Court made an Order prescribing a procedure by which client money held by WorldSpreads Limited (in special administration) (“WorldSpreads”) should be distributed to clients. The Order can be viewed and downloaded below.

 

This is also notice that Jane Bronwen Moriarty and Samantha Rae Bewick of KPMG LLP, the Joint Special Administrators of WorldSpreads (the “Special Administrators”), intend to make a final distribution of client money to clients of WorldSpreads, in accordance with the Order.

 

Clients who have not yet submitted a client money claim, but wish to do so, must provide their claim to the Special Administrators using the contact details at the bottom of this notice.

 

Clients may submit their claims at any point up to and including 15 July 2015, being the last date for proving. 

 

WorldSpreads intends to distribute all remaining client money.  Clients who have not submitted a client money claim to the Special Administrators as set out below by the last date for proving will not be entitled to share in the proposed distribution of client monies.

 

Clients who intend to submit a client money claim should do so within 21 days from the date of this notice, i.e. on or before 15 July 2015.

 

Once the remaining client money has been distributed, clients who have not submitted a client money claim will no longer be entitled to any distribution from the client money pool.

 

Provision is being made in WorldSpreads’ general estate for creditor claims connected with those clients who have not submitted a claim in respect of their client money entitlements.

 

WorldSpreads will assist clients who have not claimed compensation to contact the FSCS in order for those clients to try to make a claim for compensation for their client money entitlement from the FSCS.

 

The Special Administrators intend to make a final distribution to clients by 31 October 2015. 

 

THE ADMINISTRATORS AND WORLDSPREADS

 

Jane Bronwen Moriarty and Samantha Rae Bewick were appointed as Special Administrators of WorldSpreads on 18 March 2012. The Special Administrators’ insolvency practitioner numbers are 9095 and 8872 respectively.

 

The affairs, business and property of WorldSpreads are being managed by the Special Administrators who contract as agents of WorldSpreads without personal liability.

 

Worldspreads Limited is authorised and regulated by the Financial Conduct Authority. FCA reference number 230730. Registered in England No. 04898762

 

The Special Administrators can be contacted: (a) by emailing worldspreads-enquiries@kpmg.co.uk, (b) by writing to WorldSpreads Limited (in special administration), 15 Canada Square, London, United Kingdom E14 5GL, or (c) by telephoning +44 (0)20 7311 4878.

 

Samantha Rae Bewick

 

 

Special Administrators’ Progress Reports

 

 

17 October 2013

 

 

25 March 2013

 

 

WorldSpreads Limited (in special administration) second distribution to clients

19 February 2013

 

On 19 February 2013 the Joint Special Administrators declared a second distribution to clients of 5 pence in the £.

 

Clients who have assigned their claim to the FSCS

 

Those clients who had an account balance less than £50,000 and have submitted a completed application form to the FSCS, thereby assigning their claim, will not receive any further distribution from the special administration or the FSCS once they have been paid their agreed balance by FSCS.

 

Those clients who had an account balance over £50,000 and have submitted a completed application form to the FSCS, thereby assigning their claim, will receive any further distribution directly from the FSCS. The FSCS envisage that these clients will receive the distribution shortly after the Joint Special Administrator has paid it to FSCS.

 

Clients who have not assigned their claim to the FSCS

 

Clients who have agreed their balance with the Joint Special Administrators but not assigned their claim to the FSCS can request an application by emailing worldspreads-enquiries@kpmg.co.uk.

 

Clients who have not agreed their balance with the Joint Special Administrators should contact them on worldspreads-enquiries@kpmg.co.uk.

 

The Joint Special Administrators have made provision for any clients who disagree with their balance. Following resolution of such claims, any payment due will be made in respect of these amounts.

 

If you have any questions regarding the above please contact the Joint Special Administrators at worldspreads-enquiries@kpmg.co.uk.

 

WorldSpreads Limited (in special administration) first distribution to clients

23 November 2012

 

On 21 November 2012 the Court approved the first distribution to clients of WorldSpreads Limited of 3 pence in the £.

 

Clients who have assigned their claim to the FSCS

 

Those clients who had an account balance less than £50,000 and have submitted a completed application form to the FSCS, thereby assigning their claim, will not receive any further distribution from the special administration or the FSCS once they have been paid their agreed balance by FSCS.

 

Those clients who had an account balance over £50,000 and have submitted a completed application form to the FSCS, thereby assigning their claim, will receive any further distribution directly from the FSCS. The FSCS envisage that these clients will receive the distribution shortly after the Joint Special Administrator has paid it to FSCS.

 

Clients who have not assigned their claim to the FSCS

 

Clients who are owed more than £50,000 and have agreed their balance with the Joint Special Administrators but have not assigned their claim to FSCS will have their dividend payment sent within 21 days.

 

Clients under £50,000 who have either:

 

  • Agreed their balance with the Joint Special Administrators but not yet sent a completed application form to the FSCS; or
  • Not been in contact with the Joint Special Administrators since their appointment on 18 March;

 

will receive an email from the Joint Special Administrators in the coming days.

 

The Joint Special Administrators have made provision for any clients who disagree with their balance. Following resolution of such claims, any payment due will be made in respect of these amounts.

 

If you have any questions regarding the above please contact the Joint Special Administrators at worldspreads-enquiries@kpmg.co.uk.

 

Special Administrators' Progress Reports

15 October 2012

 

 

Update from FSCS

25th November 2013

 

FSCS has been paying compensation to eligible claimants under the Compensation (COMP) Rules (made by the Financial Services Authority (FSA).  However there may be some investors with claims against WorldSpreads who have not received compensation from the FSCS and may now be entitled to a payment from the Financial Conduct Authority (FCA).  These may be investors that previously applied to FSCS for compensation or investors that did not previously apply.
 
Under the COMP Rules made by the FSA, unincorporated associations, including unincorporated mutual associations, and partnerships (excluding limited liability partnerships) were ineligible to make investment claims if its size exceeded the limits in place at the relevant time.
 
FCA now considers that the rules on the eligibility of unincorporated associations and partnerships to claim on the FSCS for investment business did not properly implement the European Union Investor Compensation Schemes Directive (ICSD).  FCA is consulting on amending the COMP rules for any future failures to correct this position[1].

 

FSCS will now review any cases that can be identified where an unincorporated association or partnership might not previously have been deemed to be eligible due to their size.  This is set out in UK law at Section 247 of the Companies Act 1985 and Section 382 of the Companies Act 2006.
 
Contact details at FSCS for potential claimants are available on the FSCS website (external link).
 
[1] FCA to consult on extending FSCS protection on investments (external link).

 

 

11th July 2012

 

FSCS have now sent application forms to WorldSpreads clients that have been identified as having a likely claim for compensation. Please remember to check your spam filter to ensure you receive the application form.

 

In some instances, where client balances are very small a form has not been sent, however clients can request an application form for completion should they wish to make a claim.

 

Should you not have received an email from FSCS containing an application form and you wish to make a claim for compensation from FSCS, please contact FSCS on freephone 0800 678 1100 or 0207 741 4100 and a form will be posted to you.

 

Please note that in order to process a claim for compensation, FSCS will require:

 

  • A completed application form
  • A balance agreed with the joint special administrators- FSCS will only accept agreed balances from the Joint Special Administrators for use in determining client claims


For further information, please refer to the FSCS website.

 

 

22nd June 2012

 

The Joint Special Administrators of WorldSpreads Limited have been working closely with the Financial Services Compensation Scheme (FSCS) since the firm was placed into Special Administration.


FSCS will start emailing personalised application forms for compensation by the end of June to WorldSpreads clients. In some instances, where balances are very small, FSCS will ask that clients request an application form to be sent to them to complete.


Before this happens, an introductory email with further details of FSCS, their role, and the process for claiming compensation from them will be sent to you at the email address held by WorldSpreads. Please check your email inbox, including spam filters, over the coming days.


Should you not have received an email (containing an application form) from FSCS by 6 July 2012 and wish to make a claim for compensation from FSCS, please contact FSCS on freephone 0800 678 1100 or 0207 741 4100 to request an application form.


An application form can be dispatched by post if requested.


In order for the FSCS to begin their process your balance must first be agreed with the Joint Special Administrators. FSCS will only accept agreed balances from the Joint Special Administrators for use in determining client claims.
For further information, please refer to the FSCS website.


 

Outcome of the initial meeting of creditors and clients held on 23 May 2012 at the Methodist Central Hall, Storey's Gate, London, SW1H 9NH.


 

A meeting of creditors and clients (pursuant to paragraph 51 of Schedule B1 of the Insolvency Act 1986) of WorldSpreads Limited will be held at the Methodist Central Hall, Storey's Gate, London, SW1H 9NH, United Kingdom on 23 May 2012 at 11:00am, to consider the Joint Special Administrators’ Proposals and to consider establishing a creditors’ committee comprising representatives of creditors and clients.


 

Jane Moriarty, restructuring partner at KPMG and joint special administrator, said:
“The administration follows the discovery of accounting irregularities, which the company became aware of during the course of Friday 16 March 2012. It soon became apparent that there was a shortfall in client monies and, in order to mitigate losses for clients, the directors applied to court for the appointment of special administrators.

 

 

Other News Releases

 


If you do not agree with the account balance on the final statement that was first sent to you on 30 March 2012 please fill in the form below. Please complete one form for each account number you hold. Please use your account number as the filename and send it to worldspreads-enquiries@kpmg.co.uk together with any evidence supporting your claim.

 

 

 


The joint special administrators have put together information on a list of commonly asked questions in relation to Worldspreads Limited.

 

    Contact information

    For all non-press enquiries on the special administration of Worldspreads Ltd, please email the following:

     

    worldspreads-enquiries@kpmg.co.uk

     

    Alternatively between 9.30am and 5.30pm Monday to Friday you can call:

     

    +44 (0)207 311 4878