SVS Securities - shut down?

masonic

The current situation is a good excuse for there being additional delays. Several S&S ISA providers have warned customers that account transfers are subject to signficant delay, most are experiencing all sorts of issues they wouldn't have considered at all likely just a couple of months ago. There were complaints of court delays long before the current situation, and I doubt matters have improved. So I don't think it is beyond the realms of possibility that there are aspects of the current situation that are going to impact on the process outlined by LC.

In terms of transparency, how much more do you need? The steps to reunite SVS customers with their holdings has been described in detail. The next hurdle, namely approval from the Court, is expected on 7th May. After that, the nominated broker wants 10 weeks to fully transfer the assets across. So they've effectively given us the court date, and the estimated time the nominated broker thinks they'll need to move everything across. The only missing detail is the identity of the broker, which presumably must remain confidential until the court decision.

Is it the 4 week wait for court approval, or the 10 weeks being allowed for the transfer to be executed that you are objecting to? For context, the last time I transferred just one S&S ISA in specie between providers it took 12 weeks from start to finish.

Thrugelmir

englishmas said:

Thank you for the  bowlhead99 and manorhouse response. I  have tried to raise this issue with my MP but no result,  I think as an individual it will take me any where. We needs to do something together, eg putting some pressure on LC to be more transparent and asking FCSC that why it is taking such a long time. My worry is under current environment will be good excuse for all the organisation and this matter will linger on till next year.
I am sure some of the forum members have much more experience in dealing with the finical and legal systems, and if they can make some suggestions for the way forward.

There's now a published time scale that everyone concerned will be using their best endeavours to achieve. Absolutely pointless wasting other peoples valuable time for no benefit. 

manorhouse

I came across a comparison side these had good review . Anyone have experiences of them ?

Lets keep ideas coming .

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johnburman

Care here Manorhouse.
You will need to write to Rome if they go insolvent!

======================== 

Fineco is a full Italian Bank.  Its T&C say

Who regulates the Bank The Bank is authorised by the Bank of Italy and subject to limited regulation by the Financial Conduct Authority and the Prudential Regulatory Authority in the UK. Details of the extent of the Bank’s regulation are available from the Bank on request. The Bank is registered with the Bank Registry of the Bank of Italy (www.bancaditalia.it) and is the Parent Company of the FinecoBank Banking Group – registered in the Register of Banking Groups (the “Group”). The Bank has been authorised by the Bank of Italy (via Nazionale 91, 00184 Rome) to provide investment services (authorisation n 039839 December 13th, 1999). As the Bank is regulated by the Bank of Italy the regulatory system applying to it will be different from that of the United Kingdom. In particular, the Services will be subject to the Italian rules dealing with custody and compensation.

and this

FinecoBank S.p.A. - Registered Office Piazza Durante 11, Milan 20131 - Headquarters Via Rivoluzione d'Ottobre 16, Reggio Emilia 42123 - Share capital  € 200,941,488, fully subscribed and paid-in - ABI Code 3015,5 - VAT No. 12962340159 - Tax ID No. and Milan-Monza-Brianza-Lodi Companies Register No. 01392970404 - Economic and Administrative Index (REA) No. 1598155 - Member of the National Compensation Fund and the National Interbank Deposit Guaranteee Fund. Fineco Bank is a trademark licensed for use by FinecoBank S.p.A. authorised by the Bank of Italy and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our regulation by the Financial Conduct Authority and Prudential Regulation Authority are available from us on request. - PEC: finecobankspa.pec@actaliscertymail.it

eskbanker

manorhouse said:

Lets keep ideas coming .

To what end?

As covered in numerous earlier posts, there's no point in endlessly speculating about which broker the SVS assets will move to, so that's presumably not what you have in mind.

Or are you hoping to identify the least profitable ultra-low-cost player(s) to try to get in early ahead of the next administration?

pafpcg

eskbanker said:

manorhouse said:

Lets keep ideas coming .

To what end?

As covered in numerous earlier posts, there's no point in endlessly speculating about which broker the SVS assets will move to, so that's presumably not what you have in mind.

Or are you hoping to identify the least profitable ultra-low-cost player(s) to try to get in early ahead of the next administration?

I fear you are on a hopeless quest - you have to recognise the sort of people who used SVS extensively.  I know - I'm one of them! 

My excuse is that seven years ago I wanted to open an online joint account on a cheap platform but wasn't patient enough to open the account at JarvisX-O by post - a misjudgement I've come to regret.  (Our joint account at JarvisX-O is open now, already in use and ready for the transfer of the three equity holdings originally at SVS whenever they become available, August perhaps?)

eskbanker

pafpcg said:

eskbanker said:

manorhouse said:

Lets keep ideas coming .

To what end?

As covered in numerous earlier posts, there's no point in endlessly speculating about which broker the SVS assets will move to, so that's presumably not what you have in mind.

Or are you hoping to identify the least profitable ultra-low-cost player(s) to try to get in early ahead of the next administration?

I fear you are on a hopeless quest - you have to recognise the sort of people who used SVS extensively.  I know - I'm one of them!

Fair enough for people to be bitten once, we all make mistakes, but an apparent desperation to repeat the same mistake seems bizarre to me!  I'm all for a bargain, and the ethos of the whole site is clearly about saving money, but this headlong race to the bottom in seeking out less reputable companies who'll shave every fraction off their headline costs just seems an unnecessarily risky pursuit, and all the more so if done by those who've already been burned - to recycle one of the oldest investment adages, the most dangerous five words in the language are "this time it'll be different"....

johnburman

Guys all SVS clients will know the risks.  But the XO clients did not accept the risk of the company's insolvency followed by a lengthy wait for access to their own assets.  But we are where we are with SVS and LC.  NOW how much better/worse will this be with Fineco?   Yes they say they will segregate funds, but you must read the very complex rules on their website for this.  and assume that they will follow them.
Then their is the regulation, *seemingly* by the Italian regulator...without any guidance of the compensation actually available.  From Italy.
So *if* there is a problem with this nice big Italian bank, you are dealing with an overseas legal system; overseas liquidators/administrators and overseas compensation authority.  However bad the FCA is - and I am no fan - at least they have an address in London and understand English.  And the FSCS applies.  I've been burnt by Kaputhing in 2008.        

bowlhead99

johnburman said:

Guys all SVS clients will know the risks.  But the XO clients did not accept the risk of the company's insolvency followed by a lengthy wait for access to their own assets.  But we are where we are with SVS and LC.

It seems the SVS execution-only clients did 'accept the risk' of exactly that happening, whether or not they really understood what would happen if the person they'd engaged to be the custodian of their assets, went out of business.

It is like if I cross the road, I am probably deemed to have accepted the risk of getting knocked down by a truck and having to stick around in hospital for a while afterwards. 

I won't say, "well, I knew I might get hit by a truck and break some bones, but thought it unlikely, and how was I to know I would have to spend time in hospital recuperating afterwards, what a tedious palaver, I'd never have accepted the risk if I knew the practical aspects of getting hit by a truck, but how was I to know it might involve a period of hospitalisation, I've never been hit by a truck before!"

The bottom line is, if you do something you accept the risks. You're right to note that although Fineco and others might be very cheap and will have some regulatory protection, they could be great value, but SVS customers now know that price isn't everything.

When crossing the road, you might find a T-shirt without padding or reflective logos is less expensive or less hassle than motorcycle gear and a reflective jacket and helmet, which seems overkill when the road isn't even busy, knowing that it won't even be fully effective in a collision anyway.  But if you have more experience of the outside world you might think twice about your choice of routes, mode of transport, clothing etc etc rather than fall back on the 'hey, I never accepted this risk' argument after it's too late.

masonic

It's worth remembering that SVS were not very cheap. They started out at parity with Jarvis, but trades were put up to something like £8 several years ago - when they raised their prices to that level, it was enough to make me move elsewhere. There are several good options that are cheap but not unsustainably so, and it wouldn't be hard to find a broker that gives you an overall saving vs SVS, but with a much better reputation, and UK regulation and FSCS protection.