As many have already heard, there have been some new developments in the PFGBest bankruptcy proceedings. Here’s what’s relevant:
- Vision Financial filed the winning bid for reception of PFGBest accounts by way of bulk transfer, and will provide $325,000 to the Trustee. To read the full legal order, click here. Vision is one of the larger FCMs in the industry, primarily dealing with retail accounts. Information for former PFGBest brokers may be found here, while general reporting on the transfer may be viewed here. The target date for the move is October 19th, but as we’ve learned throughout this process, these sorts of targets are frequently moving. The amount to be moved will remain 30% of 4d (Segregated) balances and 40% of 30.7 (secured) balances.
- At this point, we’re simply happy that the distribution is moving ahead, and are hopeful Vision acts in an honorable manner to provide the necessary assistance for these victims as they decide whether to send money home, transfer to a broker of their choice, or stay at Vision. Attain has a pre-established relationship with Vision, and will be working with their staff to help our clients through this process.
- As a part of this agreement, the concept of a “first” or “second” wave of distributions is a thing of the past. The initial distribution to PFGBest clients will happen all at once, with the remaining funds distributed via a claims process, or, potentially, another bulk distribution.
- There were, however, roughly 350 accounts which could not be initially verified, and will not be included in the initial distribution. Items that might have put an account into this category included accounts with a round number with no activity, accounts with no activity for 90 days prior to the bankruptcy, accounts where the SSN or corporate tax ID number could not be verified with the IRS. The list of these accounts has not yet been made public, and as of now, we’re unsure as to how the accounts will be handled. Our best guess? They’ll go straight to the claims process.
- PFGBest victims will need to file a claim form by no later than November 16th. Attain is filling out all necessary paperwork on behalf of their clients, but for others, the information can be found here.
We’ll continue to follow the situation closely, but all in all, there’s really only one thing to say: it’s about time. The money of former PFG customers has been locked up too long.