FSCS’s investigation into Independent Derivative Traders continues
The UK Financial Services Compensation Scheme (FSCS) today provided a brief update regarding the Independent Derivative Traders Ltd matter.
FSCS says its investigations into Independent Derivative Traders are continuing.
Right now, FSCS’s legal team are working with the insolvency practitioner, Griffins, to get documentation that may help when considering customers’ allegations. Specifically, whether any regulatory breaches may have occurred, and if these fall under the protection of FSCS rules.
Independent Derivative Traders Ltd (IDT) is a UK registered company (number 03038982) and was authorised by the FCA (number 186581).
IDT had permission to deal in investments as principal. On 25 November 2016, IDT was placed into compulsory liquidation. Griffins Insolvency Practitioners LLP have been appointed to wind-up the business. FSCS declared IDT in default on 31 August 2017.
In May 2021, FSCS confirmed that it received claims from traders who used IDT’s services and who suffered losses as a result of their dealings with the company.
As FX News Group has reported, directors of Independent Derivative Traders Ltd, trading as ‘Futex’, got banned after causing the company to take money from clients and make self-serving payments while being insolvent.