Discuss LQDMarkets.com (Liquid Markets)

[LQDP]

Hi Raimundas,

Where did you find this information that you have been categorized as "Professional Client"? Maybe you should contact Baker Tilly to try to clarify this issue and change your status because it potentially can make difficult to get compensation from FSCS (which I hope eventually cover all our losses). I do not know what turnover did you have on your account, but if it was relatively small (not good enough to make for a living), you did not make Forex transactions to hedge your other business activities and you have a full-time job (other than Forex), then I do not see any reasons why you should be considered a Professional Client.

Anyway I hope FSCS will compensate losses to all LQD Markets clients.

Best regards

LQDP

 

[LQDP]

By the way - does anyone have any updates on what is going on regarding liquidation of LQD Markets? It has been like two weeks since company bankrupted and not much seems to happen.

Best regards

LQDP

 

[Raimundas]

Where did you find this information that you have been categorized as "Professional Client"?

Here is an instruction to check your Client Categorization status:
1. You have to find an email with subject line "Important notification, transfer of your trading account at LQD Markets". It should be datable 17 June, 2014;
2. Click the "Click here to migrate your account" button inside this email. It's strange, but the button is workable still. - I tested it today;
3. You'll be redirected to the site, where you can see the "Click here to download a copy of your updated contract" link;
4. You should download a copy of your contract and open it;
5. You'll find your Client Categorization status on the 1st page.

Maybe you should contact Baker Tilly to try to clarify this issue <...>"

I done it (used an email address lqdmarkets.rr@bakertilly.co.uk) few days ago. No answers yet...

I do not know what turnover did you have on your account, but if it was relatively small (not good enough to make for a living), you did not make Forex transactions to hedge your other business activities and you have a full-time job (other than Forex), then I do not see any reasons why you should be considered a Professional Client.

My turnover was relatively small (few lots per month), no hedging, it wasn't my full-time job... I don't know the reasons to qualify me as "Professional".

Anyway I hope FSCS will compensate losses to all LQD Markets clients.

I'm doubting about it. See the citation from the site (Financial Services Compensation Scheme (FSCS) - Security of Funds):

The purpose of the Compensation Scheme is to secure the claims of all covered clients, in this case retail clients, through the payment of compensation where the investment firm is unable to:
<...>

Best regards,
Raimundas

 

[Raimundas]

By the way - does anyone have any updates on what is going on regarding liquidation of LQD Markets? It has been like two weeks since company bankrupted and not much seems to happen.

Special administrators of Baker Tilly have 8 weeks in time to do their job.
This is all I know about the LQD Markets (UK) Limited: http://fca.org.uk/static/documents/supervisory-notices/lqd-markets.pdf

P.S.: LQDP, I wrote a PM to you...

Best regards,
Raimundas

 

[Raimundas]

The Web site of the company (http://www.lqdmarkets.com/) is not accessible today...

 

[santa1]

This is the latest news: Update for customers of LQD Markets - Update for customers of LQD Markets | FSCS

 

[LQDP]

Hi Raimundas,

I could not find the email from LQD Markets (the one you mentioned above). Apart from this problem http://www.lqdmarkets.com/ seems to be shut down again. Anyway I do not think that LQD Markets classification makes you a client other than "retail". Maybe you could write an email to FSCS and ask them about it - if they say that you are not eligible to get compensation (because of the classification), then I would send an official email to Baker Tilly with request to change your classification (with all the arguments you mentioned above: "My turnover was relatively small...").

And look what I found on FSCS web page - it seems that all types of LQD Markets clients can receive compensation from FSCS:
Financial Compensation Claims Limit | Deposit Insurance | FSCS

Best regards

LQDP

 

[Raimundas]

I could not find the email from LQD Markets (the one you mentioned above).

There's two of possible causes: either you become client of LQD Markets (UK) after 17 June, 2014; or you have manually deleted the email by yourself...

Apart from this problem http://www.lqdmarkets.com/ seems to be shut down again.

Currently, the site is up again.

Anyway I do not think that LQD Markets classification makes you a client other than "retail".

Look at this:

Maybe you could write an email to FSCS and ask them about it - if they say that you are not eligible to get compensation (because of the classification), <...>

Currently, I'm waiting for the reply from FSCS...
LQDP, did you received any reply from either FCA or FOS?

And look what I found on FSCS web page - it seems that all types of LQD Markets clients can receive compensation from FSCS:
Financial Compensation Claims Limit | Deposit Insurance | FSCS

Information on your link is rising my hopes, but FAQ (see this document: https://bakertilly.insolvencypoint.com/documents/13127) from Baker Tilly isn't so optimistic: FSCS compensation is mentioned (see the question #10) on the "The following questions apply only to Retail Clients" section of the FAQ document, but it isn't mentioned under the "The following question applies only to Professional Clients" section ...

Best regards
Raimundas

 

[LQDP]

Hi Raimundas,

I think I migrated my account in a different way - by logging into LQD Markets client area. But I still think that LQD Markets classification does not have to be the same as classification done by FSCS and you still can be considered a "retail" client. We have to wait for FSCS reply. But it would be smart to gather all the arguments and evidence (account statements, maybe some proofs that in recent years you had a regular job other than Forex trading, etc.) that you are not a professional client - in case FSCS say otherwise.

Some time ago I wrote emails to FCA and FOS, but did not get anything more that info that I should wait to hear from liquidators.

Best regards

LQDP

 

[Raimundas]

We have to wait for FSCS reply.

Today I have received a FSCS's reply. Luckily, the answer was favourable to me:

<...> there is no specific exclusion under our rules for claimants categorised as "professional clients". However, we would need to consider this classification, along with the reason for a claim presented.
Where the basis of the claim is made of: * mis-selling; * poor advice; or * poor product description (etc) by an advisor, we may question whether a professional client genuinely relied on the advice and whether the advice caused / led to their loss.
Alternatively, where the basis of the claim is non-return of funds it is unlikely that we would reject a claim because a client was a professional.
To clarify, whilst our assumptions about the knowledge and understanding of the risks of the product would be greater for a professional as opposed to a retail client, this would have more of an impact on claims for poor advice, than for claims for non-return of funds.