SVS Securities - shut down?

masonic

Toki wrote: »

Thank you again. Appreciate your help I should have said that I am DIY (no advice from SVS of Financial Advisor) and hold in SVSXO. Total around £25k in individual shares, Vodafone, Tesco etc.

Hopefully you are right and will find out more tomorrow. Noted Alexland, think you are right. I was reading an old post which stated £50k.

There is no need for there to have been any advice. While the advice route is one way to FSCS compensation (when you receive unsuitable advice and you suffer investment losses as a result), you can also claim when a firm goes belly up holding your investments if it cannot return those investments or repay you their current market price. Either way, this is an inconvenience, but your capital is safe.

Alexland

I don't claim to know much about SVSXO but I understand they were reasonably respectable so it just goes to show how careful and selective you should be when choosing who gets your business.

Toki

masonic wrote: »

There is no need for there to have been any advice. While the advice route is one way to FSCS compensation (when you receive unsuitable advice and you suffer investment losses as a result), you can also claim when a firm goes belly up holding your investments if it cannot return those investments or repay you their current market price. Either way, this is an inconvenience, but your capital is safe.

Thanks for clearing up. I must have misread dunstonh and your own post in the thread below in my panic around individual shares. I'll sleep easier now.

https://forums.moneysavingexpert.com/discussion/5933769/fscs-50-000-maximum-payouts&highlight=beaufort

masonic

Alexland wrote: »

I don't claim to know much about SVSXO but I understand they were reasonably respectable so it just goes to show how careful and selective you should be when choosing who gets your business.

They were considered respectable and came fairly well recommended here, some years ago. I found nothing untoward when I checked them out in 2013 and subsequently opened an account. Other than a rather annoying practice of occasionally phoning me and trying to convince me to sign up for a share tipping service, they offered a great service. I ended up closing my account in 2017, but had no issues with that or any other aspect of their service.

I'm not sure what steps could have been taken to avoid being caught up in this, other than sticking to the biggest 3 or 4 providers.

masonic

Toki wrote: »

Thanks for clearing up. I must have misread dunstonh and your own post in the thread below in my panic around individual shares. I'll sleep easier now.

https://forums.moneysavingexpert.com/discussion/5933769/fscs-50-000-maximum-payouts&highlight=beaufort

The information on the FSCS website at that time somewhat muddied the waters. The scenario in which your nominee runs off with your investments is still unprecedented as far as I'm aware. Here is the new wording that was added after the discussion in that thread:

"If a firm fails holding client money or assets in connection with a type of regulated activity that FSCS can cover, we can compensate if there is a shortfall in your client money/assets."
https://www.fscs.org.uk/what-we-cover/investments/

Alexland

masonic wrote: »

I'm not sure what steps could have been taken to avoid being caught up in this, other than sticking to the biggest 3 or 4 providers.

Hopefully they will have been respectable enough to have correctly segregated client assets so nobody suffers actual loss regardless of account valuation.

Still it does make you think - at a time when I am in the process of consolidating my two SIPPs together as I concluded that maybe I take the risk of failure in reputable platforms too seriously...

Alex

masonic

Alexland wrote: »

Hopefully they will have been respectable enough to have correctly segregated client assets so nobody suffers actual loss regardless of account valuation.

Still it does make you think - at a time when I am in the process of consolidating my two SIPPs together as I concluded that maybe I take the risk of failure in reputable platforms too seriously...

It certainly gives pause for thought. This will no doubt have an impact on other small firms, rightly or wrongly.

Here's hoping for an announcement tomorrow that the FCA has stepped in and appointed administrators, who will execute the firm's wind-down plan.

[Deleted User]

I have a stocks and shares ISA with Jarvis Investment Management (XO online). Current value is about £89,000. I understand that Jarvis is a similar firm to the one under discussion on this thread, It's very difficult to spread investments around various platforms to keep the value under £85,000. I know that investments are supposed to be ring-fenced but am concerned about the risk of internal mismanagement at the platform.

masonic

Deleted_User wrote: »

I have a stocks and shares ISA with Jarvis Investment Management (XO online). Current value is about £89,000. I understand that Jarvis is a similar firm to the one under discussion on this thread, It's very difficult to spread investments around various platforms to keep the value under £85,000. I know that investments are supposed to be ring-fenced but am concerned about the risk of internal mismanagement at the platform.

It's quite a dilemma. You have £89k safely looked after by a company who is still in business (at least for the time being). Had your concerns led you to split your ISA, you might have held half with XO and half with SVS. The more platforms you spread your money around, the more chance you'll experience a platform go insolvent.

Thrugelmir

Deleted_User wrote: »

I have a stocks and shares ISA with Jarvis Investment Management (XO online). Current value is about £89,000. I understand that Jarvis is a similar firm to the one under discussion on this thread, It's very difficult to spread investments around various platforms to keep the value under £85,000. I know that investments are supposed to be ring-fenced but am concerned about the risk of internal mismanagement at the platform.

Don't panic until the details become clearer. Jarvis is a long established , well respected outfit, that has been trading since 1984. The half year accounts to 30th June suggest that the company is financially sound. This provide an opportunity to acquire yet more corporate business.