SVS Securities - shut down?

masonic

johnburman said:

I really wonder if they can cope with the influx of the new clients, most of whom will want to transfer out.  Will there be long delays for this?     

It is likely there will be delays. All transfers are facing some delay at the moment due to Covid and staff working from home. That might be somewhat resolved by the time the transfer to ITI is completed, but I would imagine there will be a large bolus of transfers that will need to be processed in the summer. I wouldn't delay getting your transfer request in. Don't underestimate the power of apathy though, I wouldn't be surprised if the majority stay put, at least through the introductory period.

pafpcg

leonde said:

masonic said:

leonde said:

Unsettling news about ITI Capital's past incarnations. Puts me in two minds about whether it is worth using them to sell stocks from my portfolio I don't want in order to save the extra expense from transfer out fees.

If you initiate a transfer out promptly, there will be no transfer out fees. Selling unwanted holdings would be a good idea though, as stock transfers can take 2-3 months to be completed in normal times. Get your portfolio into a state where it can be left alone for a while before initiating the transfer out of ITI.

No fees? Is that something Leonard Curtis have arranged/that the FSCS guarantees? Great news if so.

My2penneth has quoted above what LC have replied in response to that question.  I assume that LC & INI are conforming to the Court-approved Distribution Plan.  In SCHEDULE 1 entitled "New client terms" it says this:

Fees
The fees payable by you to XXX for the Services provided under the Terms are set out in the Rate Card. Notwithstanding this above:
a)  no fees shall be applicable to you from the Effective Date to the Settlement Date;
b)  following the Settlement Date, to the extent that you instruct XXX either to transfer your cash and/or assets to a third party not associated with XXX within 6 months of the Settlement Date, XXX shall not apply any exit fees or other transaction rates, charges or commissions on such transfers to you, save that XXX shall debit any stamp duty, stamp duty reserve tax or any other transaction tax applicable to any such transfer as required by Applicable Regulations (as defined in the Terms); 
c)  for a period of 3 months following the Settlement Date, XXX shall ensure that the fees payable by you under the Rate Card shall be equal to the fees you paid for comparable services under the standard SVS terms of business (or, where you are able to evidence an alternative fee arrangement between you and SVS, that alternative fee arrangement). 

"XXX" is the Nominated Broker now revealed to be INI.  "You" is the client of SVS transferred to INI.

rnf11

The above comments make no reference to ITIC's ongoing custody charges.

Is it indeed the case that the accounts transferred by LC will not be liable for any custody charges? For what length of time - three months, six months?

masonic

rnf11 said:

The above comments make no reference to ITIC's ongoing custody charges.

Yes they do.

rnf11 said:

Is it indeed the case that the accounts transferred by LC will not be liable for any custody charges? For what length of time - three months, six months?

Why not have a read of the quoted text in the post just above yours for the details?

rnf11

Masonic,

I did and have have just so done again. It is all about the TRANSFER fees, other than a reference to the SVS rate card.

"No fees between the Transfer date and the Settlement date". Sure. But after that?

So I do believe my query is valid.

masonic

rnf11 said:

Masonic,

I did and have have just so done again. It is all about the TRANSFER fees, other than a reference to the SVS rate card.

"No fees between the Transfer date and the Settlement date". Sure. But after that?

So I do believe my query is valid.

Let me narrow it down for you:

pafpcg said:

c)  for a period of 3 months following the Settlement Date, XXX shall ensure that the fees payable by you under the Rate Card shall be equal to the fees you paid for comparable services under the standard SVS terms of business (or, where you are able to evidence an alternative fee arrangement between you and SVS, that alternative fee arrangement). 

rnf11

OK. So if that does cover it then it is ONLY for the first three months. ie half of the "free" transfer window.

Best not hang about then...

masonic

rnf11 said:

OK. So if that does cover it then it is ONLY for the first three months. ie half of the "free" transfer window.

Best not hang about then...

I would advocate anyone wishing to move elsewhere not to hang about. I don't know at what point during a transfer ITI would no longer charge a custody fee, but it is certainly possible for a transfer request submitted on day one not to be complete by the end of the price-matching period. Better to get in towards the start of the queue as those at the back could have an even longer wait.

johnburman

the discussion about "custody fees" is just one reason why ITI is unsuitable for the usual run of the mill XO client.  I agree with the comments made: get your transfers in early.   My guess, expressed in an earlier email, is that ITI will not have the staff/admin to deal with all c20,000 clients transferring in.  Hence their reason to remain anonymous and the 5-6 week delay between transfer and dealing (and why they have the cheek to ask their new clients not to contact them for 5-6 weeks).  I suspect that they do not want to keep the now XO clients.  but it is a shame as a "soda customer to-day can turn into a steak customer tomorrow" but not perhaps with their charges!  

Thrugelmir

johnburman said:

 My guess, expressed in an earlier email, is that ITI will not have the staff/admin to deal with all c20,000 clients transferring in.  Hence their reason to remain anonymous and the 5-6 week delay between transfer and dealing (and why they have the cheek to ask their new clients not to contact them for 5-6 weeks). 

Perhaps not everything happens at the click of the fingers as sometimes appears to be assumed. There's a little admin involved to ensure a smooth transition and that dealing can commence the day it is announced it will be.