AFX Markets Ltd, trading as STO, Quantic Prime, tradealot, XSecurities, eloFX

19 Oct, 2021

FSCS is now open to claims from customers who invested with AFX Markets Ltd.

AFX Markets Ltd was authorised by the Financial Conduct Authority (FCA) and operated in the UK.

Working closely with the Joint Special Administrators (JSAs) from CG&Co, FSCS has agreed on a process with the JSAs to review customer claims and pay compensation on eligible claims.

Please note:

1. FSCS will only be able to pay compensation to customers who were clients of AFX Markets Ltd. The JSAs will determine whether a customer was a client of AFX Markets Ltd. FSCS will rely on the JSA’s judgement as to whether a customer was a client of AFX Markets Ltd.
   
   
2. Customers will need to agree their outstanding balance with the JSAs.
   
   
3. If the JSA has confirmed points 1 and 2 above to FSCS, FSCS will then consider whether the claim is eligible for compensation under our rules set for us by the FCA.

It’s important to note that FSCS will not be able to undertake a full assessment of a customer’s claim, leading to a compensation payment, until we have received confirmation that:

• the JSA agree you were a client of AFX Markets Ltd; and
  
  
• the JSA has agreed your outstanding balance against AFX Markets Ltd.
  
  

Submitting a claim to FSCS

The JSAs will contact customers who are eligible to submit a claim to FSCS. They will be invited to submit a claim using the FSCS online claims service. These customers will then get further details on the claims process, and the steps they need to take. 

Once a customer’s claim has been submitted to us, we’ll ask the customer to complete a supplementary questionnaire. The supplementary questionnaire is to assist our investigation into the customer’s claim.

Many customers have already been contacted by the JSAs and have made their claims to FSCS.

Please do not submit claims to FSCS until the JSAs have contacted you.

What should a customer do if they think they are eligible to claim?

If you have invested with AFX Markets Ltd, and have not already contacted the JSAs, you should do so. This will enable the JSA to (i) determine if you were a client of AFX Markets Ltd and (ii) agree an outstanding balance with you.

You can contact CG Recovery at: Afxmarkets@cg-recovery.com

FSCS is also aware that some clients who have contacted the JSA with evidence of having dealt with AFX Markets Ltd are yet to receive confirmation that their evidence has been accepted. They’ve also not had an invitation to make a claim to FSCS. The JSAs are still considering submissions from many clients and we expect further decisions and invitations to submit a claim to us to be issued in the coming weeks and months.

AFX Capital Markets Ltd

FSCS is also aware that customers have lost money as a result of dealing with AFX Capital Markets Ltd.

AFX Capital Markets Ltd is a European Economic Area (EEA) authorised firm based in Cyprus.  It is regulated by the Cyprus regulator - the ‘Cyprus Securities and Exchange Commission (CySEC)’.

FSCS can only pay compensation if you have a valid claim under our rules, which are set by the regulators. FSCS will not be able to pay compensation in cases where customers were clients of AFX Capital Markets Ltd, as it’s a Cypriot firm.

Why is FSCS unable to pay compensation to customers who were clients of AFX Capital Markets Ltd?

Before the UK’s withdrawal from the European Union, EEA authorised firms (such as AFX Capital Markets Ltd) were able to offer certain products or services in the UK (called ‘passporting’). To do this they needed the correct passporting permission to provide those products or services in the UK.

However, FSCS protection does not extend to claims against EEA authorised firms who:

1. were acting within their passporting permissions; and
   
   
2. who were not paying a levy to FSCS to ‘top up’ their protection.

For AFX Capital Markets Ltd, FSCS’ position is that:

1. AFX Capital Markets Ltd, being an EEA authorised firm, appears to have been acting within its passporting permissions when providing its products or services that are the subject of the customer claims to FSCS; and
   
   
2. AFX Capital Markets Ltd did not pay a levy to FSCS to ‘top up’ its protection.

In view of the above, customers who were clients of AFX Capital Markets Ltd do not have valid claims. FSCS protection does not extend to claims against AFX Capital Markets Ltd.

You may wish to consider taking your claim against AFX Capital Markets Ltd to its home state regulator, the Cyprus Securities and Exchange Commission (CySEC). Its website and contact details are https://www.cysec.gov.cy/en-GB/public-info/announcements/85639/.

15 Mar, 2021

FSCS has completed its initial review of AFX Markets Ltd. We have concluded that customers may be able to receive compensation from FSCS regarding the losses suffered.

We will shortly be asking clients of AFX Markets Ltd to submit claims via our online claims service. Owing to the complexity of the AFX Markets failure we will review claims on a case-by-case basis. Also, customers are likely to be asked to complete a supplementary form in relation to AFX.

We’re sorry that it’s taken some time to reach this stage and we’re grateful for your patience.

FSCS is free to use and you don’t need to use a representative to make a claim. If you claim with us directly you will receive 100% of any compensation you’re due

28 Aug, 2019