On 18th March 2012, we confirmed that WorldSpreads Limited, a spreadbetting company, entered the Special Administration regime (SAR).
Why did the firm enter the SAR?
To help sort out customer claims and investigate possible wrongdoing, the board of WorldSpreads decided to apply to place the company into special administration.
We have serious concerns about the way WorldSpreads has been handling client money, in particular, the mixing of client funds with its own. It appears there may have been inappropriate treatment of client money and that there will be a shortfall.
How much money is missing?
We believe the shortfall of client money is approximately £13m, based upon investigations that have taken place so far.
Will I get my money back?
The special administrators, Jane Moriarty and Samantha Bewick of KPMG, will carry out a review and will return as much cash as possible to affected customers, as quickly as possible. If you are a customer of WorldSpreads, you need to be aware that any shortfall in the client money accounts will have an impact on the amount of money available to be returned.
How many customers are affected?
WorldSpreads has 15,000 customers. Once the administrators have carried out their review they will get in touch with affected customers.
Am I entitled to any compensation?
After the administrators have completed the review, it will be clear if there are any customer losses. If this is the case, depending on your individual circumstances, you may have access to the Financial Services Compensation Scheme (FSCS).
Who should I contact to find out more?
You should contact the special administrators to understand more about how this situation might affect you personally. The telephone number to call is 0203 284 8829.