An administrator of MF Global’s UK arm has warned some customers of the failed futures broker might not see all their money returned. Richard Heis, joint special administrator at KPMG, told the FT that his firm had recovered some £594m or 82 per cent of customer funds held in so-called segregated accounts, where money is supposed to be held at arms length from the business. But he said the total pay-out would be dependent on resolving valuations of outstanding claims and costs being racked up by KPMG. These costs already totalled nearly £20m. Mr Heis said there was a possibility that some customers would not see all their money returned. He said there were “more people claiming segregated status than there is segregated money”. Unlike counterparts around the world, such as the US and Canada, the UK has yet to return any assets to clients, leading to warnings that the delay was damaging London’s reputation as a financial centre.

This entry was posted by Kate Mackenzie on Wednesday, January 18th, 2012 at 4:35 and is featured in The 6am Cut London (18 Jan 2012) . Tagged with kpmg, mf global, segregated accounts. Edit this entry.