The Financial Services Compensation Scheme (FSCS) has begun the process of dealing with claims from clients of failed spreadbetting firm Worldspreads.
Worldspreads was placed into special administration by the Financial Services Authority (FSA) in March after the discovery of accounting irregularities and a shortfall in client monies amounting to £13m.
The FSCS, which has worked with administrators KPMG, said it has now completed the work required to begin the process for people with claims and will soon begin emailing personalised application forms to potential claimants in batches.
In cases where it has no valid email address, or where the balance held is very small, it will ask that clients request an application form to complete.
Claimants will have to have a balance agreed with KPMG.
The FSCS was unable to confirm how much of the compensation would be borne by levy-payers or which sub-class this cost would fall upon.
‘Most significant’ upgrade since launch
Changes happening over coming months
Had accepted British Steel business
Aimed at HNW clients and family groups
Set for 1 April 2019