SVS Securities - shut down?

Danie6

If it is going to to take a long time to transfer shares from ITI,  would it not be quicker just to sell the shares and have the proceeds paid into your bank account? From there it should be quick to fund an account with a new broker. I would like to sell the majority of my holdings in case and sit on my hands for a while.

masonic

Danie6 said:

If it is going to to take a long time to transfer shares from ITI,  would it not be quicker just to sell the shares and have the proceeds paid into your bank account? From there it should be quick to fund an account with a new broker. I would like to sell the majority of my holdings in case and sit on my hands for a while.

You could certainly do that for a general investment account, although it does mean being out of the market for a few days (you won't be able to withdraw until the trades settle, and withdrawals may be on the 3 day BACS clearing cycle). If you want to be in cash anyway then perhaps not an issue for you. For those with ISAs then that isn't a very good solution, although they could transfer in cash which ought to be quicker than in specie.

Sheris

Just like to say thank you to all for the post on this forum, which has been more info than i have been given from L&C  

masonic

leonde said:

But it is certainly annoying when the press are reporting on details later shown to be true that could only have come from LC before we've officially been told ourselves. Speaking for myself, of course!

Which details were those?

masonic

leonde said:

masonic said:

leonde said:

But it is certainly annoying when the press are reporting on details later shown to be true that could only have come from LC before we've officially been told ourselves. Speaking for myself, of course!

Which details were those?

Oh, I was thinking of two instances: the choice of ITI Capital as stockbroker (I was wrong, that was inadvertently revealed in a document), and this story (although I was strictly wrong there also, because the date later proved to be incorrect - but LC did not tell US of their intentions).

My2penneth said:

https://citywire.co.uk/wealth-manager/news/over-100-predators-circle-failed-wealth-firms-assets/a1268361

Looks like we wont see our assets until Q1 2020

"However, it said that ‘further processes’ would need to be effected before such a transfer or a separate pay out could take place, including a formal bar date and distribution plan.

That would require court approval, which they aim to obtain in the first quarter of 2020."

Edit: Maybe I'm wrong on that point too, because I see now letters with the relevant date (12th September) were posted on their website - it's just I heard of the news here first via a news source.

Yes, in both cases the information was posted to the website before the news article was written. I should point out that the choice of broker was revealed by me in this thread on 24th April (see https://forums.moneysavingexpert.com/discussion/comment/77091128#Comment_77091128), while the earliest media reports of the nominated broker were made over a month later (in response to this announcement: https://www.leonardcurtis.co.uk/wp-content/uploads/2020/06/Announcement-of-Nominated-Broker-03.06.2020.pdf ).

The Citywire article dated 13th September 2019 was posted in response to this update: https://www.leonardcurtis.co.uk/wp-content/uploads/2020/01/130919-Media-statement-SVS-SECURITIES-PLC-IN-SPECIAL-ADMINISTRATION.pdf

If you should be suspicious of anyone, it should be the guy who told you who the nominated broker was in late April, when the earliest this news was broken elsewhere was in early June

pafpcg

Email received from "hello@iticapital.com" welcoming ex-SVS clients to ITI.

Text of email about the arrangements for July-23rd is pretty much identical to the latest email from LC.  Some extra paragraphs about why we should stay with ITI.....

dont_look_now

pafpcg said:

Email received from "hello@iti.com" welcoming ex-SVS clients to ITI.

I was surprised to get an email like that (but from hello@iticapital.com — is that what you meant to type? ), because my SVS account was empty (no shares, no cash) when they imploded, and I haven't received any other update emails about the special administration. (All I've been receiving on that email address is a lot of spam about dodgy "investments".)

I suppose ITI may want to encourage people with empty SVS accounts to sign up with them, because they might start using the ITI account. It's a potential way to acquire new customers.

I guess I'll just ignore the request to sign up.

olderbutnowiser

My email arrived in my spam folder.... which is probably telling me something I already know!

masonic

dont_look_now said:

pafpcg said:

Email received from "hello@iti.com" welcoming ex-SVS clients to ITI.

I was surprised to get an email like that (but from hello@iticapital.com — is that what you meant to type? ), because my SVS account was empty (no shares, no cash) when they imploded, and I haven't received any other update emails about the special administration.

Same, though no dodgy emails either. Perhaps I'll follow the registration process and decline their terms of business. It will save them trying to chase me in the future.

pafpcg

leonde said:

As the fees are going to be the same as SVS' initially and I won't have to worry about some hidden charge, I may as well get my portfolio into shape before initiating my transfer to iWEB.

According to the text of the agreement between LC & ITI given in the Distribution Plan and subsequent announcements including yesterday's email, ITI will charge ex-SVS clients at the same rate as SVS for three months (until sometime in October 2020).  Whether there will be "hidden charges" remains to be seen - the cynics like me might suggest that ITI could claim that a particular function performed by ITI is not equivalent to that offered by SVS so the charge imposed will be at ITI's rate. 

The issue those who wish to transfer away from ITI will face on 23rd July is simply how much do we want to risk?  ITI's services are unknown to us:  do I request an immediate transfer of everything to my new broker and risk a potential long delay with no access to funds or holdings whilst ITI is overloaded with similar transfer requests and maybe sinks into a morass?  Or do I do a phased transfer such as: sell holdings and withdraw funds to my bank account or other combination in the expectation that ITI can perform the simpler tasks efficiently but at the risk that there's more opportunity for failure?  For ISA holders, a transfer looks the only viable option, with the only issue being whether to transfer 'in specie' or to sell holdings & transfer as cash.

I'm considering withdrawing the waiting cash to my bank account, requesting the certification of one of my holdings (which I'm not planning to sell for a few years) and then transferring the remaining shareholdings.  But the big question is: when?  Transfer as soon as possible and risk being at the mercy of inexperienced staff overwhelmed by demand?  Or wait until the initial rush is over when user experiences have been reported and debated on this forum?

We'll find out next week!