* KPMG said MF clients have til end of March 2012 to claim
* Admin will return funds 14 days after claim agreed
By Luke Jeffs
LONDON, Nov 28 MF Global UK's administrator KPMG said the failed futures broker's clients
will be able to claim monies frozen at the firm beginning early
next month in a move that offers frustrated investors some hope
they will recover their cash.
KPMG said on Monday MF Global UK clients can formally make
applications from Dec. 8 this year and asked that all claims
are submitted by March 30, 2012.
"This helps to create certainty around the number and the
size of claims with the intention of allowing a return of a
proportion of client fund before March 30, 2012," said Richard
Heis, the joint special administrator of MF Global at KPMG.
KPMG also said in an emailed statement cash will be
returned to eligible clients within 14 days of the claim being
agreed by the administrators.
The pledge is a boost to MF Global clients who have become
increasingly frustrated by the lack of progress recovering the
estimated $1.2 billion of client cash and assets frozen at MF
Global when it collapsed a month ago.
APOLOGIES AND ASSURANCES
KPMG took the unusual step of apologizing to MF Global
customers and assuring them it was transferring client
positions "wherever possible" just days after the broker filed
for bankruptcy on Oct. 31.
The administrator also moved to reassure MF Global
investors when it said 10 days ago it would make interim
distributions of money to clients before it had finally settled
MF Global client frustration has also focused on
inconsistency by the world's top futures exchanges and clearing
houses, some of which responded to the MF collapse by
liquidating positions while others moved them to other
"There is no standardization across the different clearing
houses in Europe and no standardization between Europe and the
U.S., which is confusing for clients, particularly when dealing
with a global player like MF Global," said Simmy Grewal, an
analyst at research house Aite Group.
MF Global had been one of the biggest U.S. futures
brokerages but the firm, led by former United States Senator
Jon Corzine, failed after a bad $6.3 billion bet on European
sovereign debt spooked counterparties and investors.