Losses following transactions on the FOREX market

THE CONTEXT

A client entrusted a trading company with management of its funds.

Following highly irregular fluctuations in currency prices on the Forex market, the client suffered significant losses.

GM CONSULTANT INTERVENTION

A GM Consultant loss assessor specialising in financial markets analysed the contractual obligations that the trading company has towards its client in terms of investment strategy, acceptable levels of risk, and communications.

Furthermore, an understanding of major events taking place when the financial transactions were made meant that is was possible to accurately ascertain the market context (BREXIT) that led to the irregular change in currency prices.

An analysis of Forex transactions revealed discrepancies between the investment strategy actually used and the contractual obligations.

The damages suffered by the client were analysed by comparing actual financial performance to the performance that would have been generated by a strategy that matched the obligations of the fund management contract.