Monday, November 28, 2011

MF Global foreign branches to return funds

MF Global customers abroad may see their frozen funds at least partially returned in the near future, according to several reports this weekend. In the UK, clients subject to the asset freeze may submit claims in two weeks, while in Canada, a court has ordered MF Global’s trustee to begin making cash payments.
KPMG, the firm now responsible for MF Global’s UK branch, says that customers may submit claims beginning December 8. “This helps to create certainty around the number and size of claims with the intention of allowing a return of a proportion of client funds before March 30 2012,” explained Richard Heis, joint special administrator of MF Global UK. The amount clients can expect to recover will depend in turn on what KPMG receives from banks, exchanges, and other institutions. Approved claims will be paid within 14 days. This announcement comes on the heels of a US court order granting American trustees access to company funds. While MF Global’s American operations have been plagued by reports of missing millions (if not billions), these shortfalls are not expected to affect clients in the UK.