Spreadbetting provider Worldspreads has become the third company ever to enter administration via the new Special Administration Regime (SAR) rules.
The Financial Services Authority (FSA) confirmed the directors of Worldspreads had applied to the high court to enter administration under SAR rules with KPMG’s Jane Moriarty and Samantha Bewick appointed as ‘special’ administrators.
It comes after Insolvency News reported last week on Worldspreads’ accounting irregularities which the company became aware of during the course of Friday 16 March 2012.
Following this it became apparent that the company was unable to continue in business and the directors and their advisors concluded that the best course of action, in order to mitigate losses for clients, would be to place the company into special administration.
The administrators will review the client cash holdings positions and will return as much cash as possible directly to each client as soon as practicable.
However, clients should be aware that any shortfall in the client money accounts will impact the amount of money that can be returned.
Depending on individual circumstances customers may have access to the Financial Services Compensation Scheme (FSCS) should there be any losses.
Customers should contact the special administrators to understand more about implications for them personally.
Customers of Worldspreads should contact the joint special administrators for more information on 020 3284 8829.