SVS Securities - shut down?

adeel26

NOTICE OF DISTRIBUTION PLAN PUBLICATION is available on LC website. You should have received an email as well with a unique code. Unfortunately the link in the email is not working!

Eastneuk

The link is working. The documents are posted on the LC webpage along with all the other documents and notices they have posted.

masonic

The redacted terms of business document in the appendix looks like it identifies the broker quite conclusively. Anyone else see the similarity? https://iticapital.com/wp-content/uploads/2018/10/Terms-of-Business-Retail-Client-October-2018.pdf

I'm afraid the fees don't look particularly appetising: https://iticapital.com/wp-content/uploads/2018/07/ITI-Private-Clients-Rate-Card.pdf , but the good news is LC have negotiated a transfer fee waiver for the first 6 months.

gibson81

If someone more intelligent and well-versed in financial matters than me can provide a brief summary, I would be very grateful!
Having read the FAQ, it looks like we don't actually have to do anything at this point in time?

masonic

gibson81 said:

Having read the FAQ, it looks like we don't actually have to do anything at this point in time?

No action is required from you at this point, but you should perhaps review the T&Cs and fees of the new broker as you might conclude you are better off moving elsewhere once the transfer is completed.

Eastneuk

Basically they have entered into a SPA with a nominated broker, but under UK legislation have to have the Courts approval to transfer the assets (which are basically held under trust). Should you want to object to the transfer then you can petition the Court. However I don't think the would be in anyone's favour as it would result in any distribution be stopped and a resulting escalation of the fees/costs of the Administrators (LC). The fees of the Administrators will be covered in the main by the FSCS and it is expected that the vast majority of clients will not suffer a financial loss. This though will be dependant on whether the Court approve the distribution plan and there are no objections from clients and/or creditors. I certainly will not be objecting. I would prefer to have my stocks and cash back with any UK broker without further delay whereupon I can transfer them if I so wish. If all goes to plan, then this would happen by the end of July. 

pafpcg

Key statement in the Explanatory Notes:

"It will not be until mid-July 2020 that Clients will be able to engage with the Nominated Broker"

Individual Client Statements will be issued mid-May.  Clients will have 21 days to challenge.  Unless you want to challenge the Plan in the Court hearings on 7-May, no need for us to do anything until mid-May.

Nominated Broker to be announced about 1-June and the transfer of client assets will take place 5 business days later (8-June if announced on 1-June), but no client contact with broker until mid-July.

Client money will be transferred to the nominated broker (subject to settlement of costs if not covered by FSCS).  I didn't see dates for the transfer of Client Money in my initial skim.  Client Money in the SVS account before administration has to be handled differently but should still end up with Nominated Broker.

I've checked my holdings in the giant list of "anonymised" client holdings and my entry looks OK.

pafpcg

adeel26 said:

NOTICE OF DISTRIBUTION PLAN PUBLICATION is available on LC website. You should have received an email as well with a unique code. Unfortunately the link in the email is not working!

The link in the email directs the browser to the "ww2.svssecurities.com" web-address!  Cut-&-paste the email's link into your browser and you get the correct web-page with all the documents to download.

The unique code is the Client Code (C9999) in the Annex-to-the-Distribution-Plan document which lists all clients and their holdings in the SVS Client Assets data-base.  (I didn't realise that the email gave that code - I found my entries in the list by loading the list into a spreadsheet and searching for one of my equities until the holdings for the client matched mine....)

pafpcg

masonic said:

The redacted terms of business document in the appendix looks like it identifies the broker quite conclusively. Anyone else see the similarity? XXXXXXXX

I'm afraid the fees don't look particularly appetising: XXXXX but the good news is LC have negotiated a transfer fee waiver for the first 6 months.

Good spotting!  It looks identical to me.

For others, compare the "Terms of Business Retail Client" in the Appendix starting on 61st page of the PDF of the "Distribution-Plan" document on the LC website with the XXX Xxxxxx document linked in masonic's post.

Agree on the fees but we not only have six months to get out for free but also three months to perform a specific task at the same charge as would have been levied by SVS.  For example, I'm assuming that I can have a share holding converted to a share certificate for SVS's charge of £15.
[The terms of the deal are given in Schedule 1 "New Client Terms" in the "Distribution-Plan" document on the LC website on page numbered 27 (58th page in the PDF).]

After all the attention LC has given to refusing to name the Nominated Broker, there'll be some embarassment up in Manchester!

Edited 26-April to remove references to a potential Nominated Broker

manted

I have never heard of this firm ITI Capital, but dont think they are going to keep my business. I'm a bit disappointed with their choice of broker, but guessing it was due to the mix of clients SVS had.