SVS Securities - shut down?

MK62

I tried to access my account this morning and it just times out (eventually).

There are some rumours online that it shut down yesterday, but it's not exactly plastered all over the place, and I've never heard of the sites carrying the rumours (so no idea how reliable they are).

https://www.shareprophets.com/views/44019/breaking-svs-securities-shutting-down

https://www.valuethemarkets.com/2019/08/02/svs-securities-another-broker-bites-the-dust-how-much-trouble-is-aim-in/

I did a quick search on here but came up with nothing.....this kind of thing is usually on here pretty quickly though tbh....

jamei305

They are currently being chased by creditors for £50 million, which may or may not be related:


https://www.thebureauinvestigates.com/stories/2019-05-07/how-major-banks-turned-a-blind-eye-to-the-theft-of-billions-of-pounds-of-public-money

pafpcg

Oh, drat!

I couldn't login yesterday (2nd Aug) to withdraw an expected dividend payment. I sent an email but have had no response.

I guess I'm now an unsecured creditor for the £200 dividend and locked-out from the three investment trust holdings I had with them as nominees.

jamei305

Now mentioned in ThisisMoney: https://www.thisismoney.co.uk/money/investing/article-7317981/STOCK-WATCH-50-50-bet-HSBC-share-buyback-lose-lose.html


No doubt more mainstream sources will cover it tomorrow.

Toki

Am I right in saying the first £50k in an ISA is protected by the FSCS? Anyone been through similar with Beaufort Securities? What happens from here on?

Thanks in advance.

masonic

It would appear I've dodged another bullet! Left them soon after they rebranded SVS-XO and hiked their fees.

Toki wrote: »

Am I right in saying the first £50k in an ISA is protected by the FSCS? Anyone been through similar with Beaufort Securities? What happens from here on?

The first £50k£85k, whether in an ISA or not, is covered by the FSCS, though I doubt it will come to that. No reason to think at this stage that their clients' investments have not been ringfenced. Most likely another firm will take on these accounts.

pafpcg wrote: »

I guess I'm now an unsecured creditor for the £200 dividend and locked-out from the three investment trust holdings I had with them as nominees.

You won't be an unsecured creditor unless there has been fraudulent activity going on behind the scene. Cash held on the platform should be ringfenced also.

Toki

masonic wrote: »

The first £50k, whether in an ISA or not, is covered by the FSCS, though I doubt it will come to that. No reason to think at this stage that their clients' investments have not been ringfenced. Most likely another firm will take on these accounts.


You won't be an unsecured creditor unless there has been fraudulent activity going on behind the scene. Cash held on the platform should be ringfenced also.

Thanks. Assuming the worst, I have individual shares held, is this covered by the FSCS also?

masonic

Toki wrote: »

Thanks. Assuming the worst, I have individual shares held, is this covered by the FSCS also?

I can understand why you might think you would not be covered. FSCS cover does not apply to losses within individual shares, ITs and ETFs. However, this situation is not one in which your investments have lost money, it is one in which your FCA authorised investment firm cannot meet its obligations to you, so regardless of what you have invested in you have coverage for the value of your investments up to the £85k limit (increased as of April this year).

Alexland

masonic wrote: »

The first £50k, whether in an ISA or not, is covered by the FSCS.

Surely that would now be 85k for failures occuring after 1st April 19?

https://www.fscs.org.uk/what-we-cover/investments/

masonic

Alexland wrote: »

Surely that would now be 85k for failures occuring after 1st April 19?

https://www.fscs.org.uk/what-we-cover/investments/

It would, and your post crossed with my edit when I realised just that

Toki

masonic wrote: »

I can understand why you might think you would not be covered. FSCS cover does not apply to losses within individual shares, ITs and ETFs. However, this situation is not one in which your investments have lost money, it is one in which your FCA authorised investment firm cannot meet its obligations to you, so regardless of what you have invested in you have coverage for the value of your investments up to the £85k limit (increased as of April this year).

Thank you again. Appreciate your help I should have said that I am DIY (no advice from SVS of Financial Advisor) and hold in SVSXO. Total around £25k in individual shares, Vodafone, Tesco etc.

Hopefully you are right and will find out more tomorrow. Noted Alexland, think you are right. I was reading an old post which stated £50k.