The administrators have also confirmed that more than 300 MF Global UK staff will continue with the work of reconciling client monies and assets, collecting debts and other matters necessary for the successful resolution of the estate.
Since the appointment of administrators to MF Global UK, substantial progress has been made in closing and transferring positions; dealing with defaults on the exchanges; progressing the identification of segregated client monies; negotiating with the external institutions which hold client funds for their return and – importantly - exploring the possibility of making interim payments while the colossal task of identifying and reconciling clients positions is achieved.
Richard Heis, Joint Special Administrator and Restructuring Partner at KPMG, commented: “Crucial to returning client monies is gaining control over client funds held with the banks, exchanges and clearing houses. We are starting to see the fruits of our labours and funds are starting to be released to MF Global UK. We are negotiating to ensure that client monies are returned to us as soon as possible to enable them to be distributed."
“The ultimate return of client money to clients will be dependent on the special administrators establishing the quantum of the claims against funds held in designated client money accounts and the non-segregated monies. Upon the failure of a regulated firm, under the FSA’s Client Money Distribution Rules (CASS 7A) all segregated client monies must be ‘pooled’ together and distributed to clients in accordance with those rules. Final distributions to clients will not be made until all client risk positions have been liquidated or transferred and all claims against have been validated; however, we are likely to make interim distributions along the way.”
The administrators have also confirmed that more than 300 MF Global UK staff will continue with the work of reconciling client monies and assets, collecting debts and other matters necessary for the successful resolution of the estate. Around half of this number will stay until the end of January, with the remainder staying until the end of April. This period is likely to be extended by several months or even years depending on progress.
Richard Heis, added: “We are very pleased that so many people have agreed to stay. This is an extremely complex process and the assistance of the MF Global UK staff will help to maximise returns for the estate and expedite the return of client assets and monies.”
- ENDS -
For all non-press queries, please email your details to:
The administrators will respond to your query as soon as possible.
For further information please contact:
Lucinda Kemeny, MHP
T: 020 3128 8758
Katie Hunt, MHP
T: 020 3128 8794
KPMG Press Office: +44 (0) 207 694 8773
Notes to Editors
Richard Fleming, Richard Heis and Mike Pink of KPMG LLP were appointed joint special administrators of MF Global UK Limited, a UK based broker-dealer business, and MF Global UK Services Limited, which provides employee and pension services in relation to the UK operations, at 5pm on Monday 31 October 2011. MF Global UK Limited is a wholly owned subsidiary of MF Global Europe Limited which in turn is a subsidiary of MF Global Holdings Limited, a company incorporated in Delaware, USA, which filed for chapter 11 bankruptcy protection on 31st October.
The objectives of the administration are:
Progress of the administration is tracked on the dedicated KPMG web pages:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff. The UK firm recorded a turnover of £1.6 billion in the year ended September 2010. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have more than 138,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.
Richard Fleming, Richard Heis and Mike Pink of KPMG LLP were appointed as the "Joint Special Administrators" of MF Global UK Limited following an application to the High Court in London by the directors of MF Global UK Limited on Monday 31 October 2011.
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.