SVS Securities - shut down?

pafpcg

My2penneth said:

I wonder if the Chinese all have access to their funds?

Why would Chinese clients get preference?  Surely, it's clients "with snow on their boots" who would expect priority at ITI!

My2penneth

pafpcg said:

My2penneth said:

I wonder if the Chinese all have access to their funds?

Why would Chinese clients get preference?  Surely, it's clients "with snow on their boots" who would expect priority at ITI!

You are probably correct, comrade pafpcg!  

Thrugelmir

manted said:

My2penneth said:

The choice of ITI came down to a list of 3 brokers (down from over 100+ who said "err, no thanks"). The favourite entered into due diligence with LC but then pulled out when a bigger insolvency situation arose and they decided to focus their attention on that instead. This left two companies in the running. Then it was discovered that a director of one of the candidates had former dealings as an SVS director............ and the FCA said..."no".

This left.....ITI Capital as the only game in town.

That's very interesting. "If only" LC had tried to split the clients .. with XO clients separate from FX, we would have surely got a main market broker who had the capability to take us on.

Would the return have warranted the outlay to effect the transfer? Given that many clients would have walked anyway to their preferred (current) broker. 

johnburman

 

My2penneth said:

The choice of ITI came down to a list of 3 brokers (down from over 100+ who said "err, no thanks"). The favourite entered into due diligence with LC but then pulled out when a bigger insolvency situation arose and they decided to focus their attention on that instead. This left two companies in the running. Then it was discovered that a director of one of the candidates had former dealings as an SVS director.......... and the FCA said..."no".
This left.....ITI Capital as the only game in town.
Your numbers are right, but is this really the story?  How do you know?  And as a matte rif interest what a bigger insolvency situation arose?

What I wanted to know then and want to know now, is why did ITI want the SVS clients?  I can understand them wanting the FX clients, but not the XO clients who are the clear majority. 

My2penneth

johnburman said:

 

My2penneth said:

The choice of ITI came down to a list of 3 brokers (down from over 100+ who said "err, no thanks"). The favourite entered into due diligence with LC but then pulled out when a bigger insolvency situation arose and they decided to focus their attention on that instead. This left two companies in the running. Then it was discovered that a director of one of the candidates had former dealings as an SVS director.......... and the FCA said..."no".
This left.....ITI Capital as the only game in town.
Your numbers are right, but is this really the story?  How do you know?  And as a matte rif interest what a bigger insolvency situation arose?

What I wanted to know then and want to know now, is why did ITI want the SVS clients?  I can understand them wanting the FX clients, but not the XO clients who are the clear majority. 

Look at their rate card....25bps for custody of your ISA. That would be £250 pa for ever £100k tucked away in an ISA....every year taken from your account. Then there are the fees for buying and selling.

johnburman

Oh and for everybodys entertainment , th eITI website says:

30 000 +clients         240 employees     6 offices

So with that small number of employees spread around the Globe how do they expect to onboard 20k new clients in a couple of days in London. 
Wonder if they will be working over the weekend? 

pafpcg

johnburman said:
What I wanted to know then and want to know now, is why did ITI want the SVS clients?  I can understand them wanting the FX clients, but not the XO clients who are the clear majority. 

I'd speculate:  the ambition to grow rapidly (with pockets deep enough to promise the FCA they could digest the SVS client-base), but not the patience to grow organically their own client-base by offering first-class service at an equitable price to attract new clients.

My2penneth

The 30k customers might include 20k from SvS?

pafpcg

johnburman said:

Oh and for everybodys entertainment , th eITI website says:

30 000 +clients         240 employees     6 offices
So with that small number of employees spread around the Globe how do they expect to onboard 20k new clients in a couple of days in London.

Probably by assuming that out-sourcing much of the work would be successful?  For example, the ID checking is outsourced to HooYu.

PS:  I think the term "on boarding" comes from HooYu - they use it on their web-site.

johnburman

You will all love this!

I have just come off a call with LLLLL [ i will not reveal her name: I do feel a bit sorry for her]  who works for ITI.  Poor lady has not much idea what is going on, other she is fielding calls from cross ex-SVS clients (including me) and she relays them to senior managment and the IT dept.   She blamed the IT system that had let "ITI down" for the problems and apologied.
At the end of the call I asked:
"ME:  Tell me, how many new staff have you takne on to onboard the 20,000 SVS clients
LLLLL : Well you won't believe it. FIVE.
ME:  Only five for 20, 000 new clients?
LLLL:  Yes [then silence]"

PS: all should be sorted in 48 hours she said
Where was the pilot; the resliance testing; the staff in case of failure; the back up; and why only FIVE new staff?