SVS Securities - shut down?

johnburman

Manted. If you have received a letter to a live account that to my mind shows that svs has you recorded as a live client at the correct address. That is good in as far as it goes.

If you have a live account and no letter I would contact Leonard Curtis to ask why not and give them details of your accounts and holdings.

If you have an account with no client assets nor client money A there is nothing to do B you are lucky! C there seems no reason for them to send you a letter. There is nothing to distribute to you.

user1168934

Like everyone else I have also received the letter. There was some text in the letter which has got me a bit worried although I have to say I don't completely understand what it means. It said something like "For the purpose of FSCS, SVS are in default ....".
Does that mean SVS are unable to pay what we held in our accounts??? Can someone shed some light please?

pafpcg

johnburman wrote: »

If you have an account with no client assets nor client money
A there is nothing to do
B you are lucky!
C there seems no reason for them to send you a letter. There is nothing to distribute to you.

I draw reassurance from the "missing" letter. Doesn't it show that, even at this early stage, the administrators have access to the value of assets within each individual account?

pafpcg

user1168934 wrote: »

Like everyone else I have also received the letter. There was some text in the letter which has got me a bit worried although I have to say I don't completely understand what it means. It said something like "For the purpose of FSCS, SVS are in default ....".
Does that mean SVS are unable to pay what we held in our accounts??? Can someone shed some light please?

The letter says "SVS is in default for FSCS purposes". That means that the default of SVS is acknowledged by FSCS and that, subject to the rules, eligible clients of SVS may receive compensation IF there's a shortfall in what the administrators can recover. It may be months before the administrators tell us if there will be a shortfall, but if there is, FSCS should cover any loss up to a limit of £85,000 per individual.

johnburman

Interesting thought. It could well be or they have a list of 'accounts with a nil balance ' and they have decided its not worth the stamp to write to that class of client. After all the client can not deposit more funds in the account as its frozen.

johnburman

New second FAQ issued by Leonard Curtis on the SVS/Leonard Curtis website.

Time period statre to be "many months". No mention of a potential purchaser.

Robster88

johnburman wrote: »

New second FAQ issued by Leonard Curtis on the SVS/Leonard Curtis website.

Time period statre to be "many months". No mention of a potential purchaser.

It actually says..

'Due to the number of clients involved, it is envisaged that this process may take a period of months.'

..rather than 'many months', although I suspect that probably amounts to the same thing.

johnburman

Quite right to correct me. And I am sure you are right

But there are only 13500 of us. And the vast majority are execution only share dealing. Surely can't be that difficult....

manted

I concur, unless they are sure of wrong doing on behalf of SVS, I don't think the administrators should require a lot of time to confirm assets are as they should be.

I also hope they don't have the discretion to use the Execution only clients' assets for distribution to the DFM clients who were mis-sold other Investments.

masonic

Don't underestimate the regulatory hurdles faced by the administrators. The FCA have mentioned potential breach of CASS rules, which could complicate matters and there will no doubt be a requirement to liaise with the FCA throughout the process and get sign-off on some actions. There may be ways in which the process could be accelerated, at greater cost, but the administrators have a duty to all creditors (not just investors who will be repaid by the FSCS) to control costs.

The administrators' proposals, expected towards the end of September, will probably paint a clearer picture as to likely timescales.