SVS Securities - shut down?

johnburman

Really interesting englishmas

The first step is to give the Ombudsmans decision to LC and get them to work out the compensation and tell you what it is and when will you get it?

They should do it and (eventually) tell you.

You can then work out the position, and whether you agree with it then. At worst you can go back to the Ombudsman again (and it may be worthwhile you doing this anyway to hurry up LC)

LC will pay you compensation presumably as an unsecured creditor as Xp in the £. If the losses you suffer that they (LC) do not pay >£85k, that is in theory lost. BUT it is the losses. There must be SOME assets there to pay unsecured creditors and all unsecured creditors are put in a pot and are paid out pro-rata. So you would only lose out if the *loss* you suffer were over £85k. Not that the ombudsman's award was over £85k.

So pursue your award with LC like the demon!

Well done for winning!

englishmas

Hi there

Thanks

Will give a call tomorrow to LC.

I suppose I only go back to ombudsman again if I was not able get any joy from LC.

Winning this case was very hard work, It was supid of me trusting SVS, lets hope other online tradiers are batter.

Any more thoughts would be wellcome

masonic

englishmas wrote: »

Any more thoughts would be wellcome

At this stage, it will be important to agree a compensation figure as you will need this to submit a Proof Of Debt form and be counted among the creditors of the business - if this is based on an investment index, it will be a moving figure, so this might cause some problems!

It won't be until late September, when the administrators circulate their proposals and a Statement Of Affairs of the business, that there will be any indication of what, if anything, is available to distribute among the creditors (remembering that secured creditors, employees, and the administrators themselves take priority). I can't imagine a company like SVS is going to have a significant amount of assets and your claim is perhaps one of many.

You may be able to claim £85k from the FSCS up-front, rather than having to wait some further months for a final distribution figure to be arrived at.

englishmas

Hi Masonic

Great full for your respose and suggestion, regarding the compensation figure , the omdusmas size it at the decision date, then giving 28 day for SVS to pay otherwise 8% intreset will apply, to calculate I needs FTSE Private Investorrs Income Total Return Index, any idea from where I can get it.
Do you think I will get something back from my account as I have some cash there. I am hoping that I will have some money back from my account and then i can claim £85K from FCA, my losses are greater than this.
What do you think.

Thank you

Regards

masonic

englishmas wrote: »

Great full for your respose and suggestion, regarding the compensation figure , the omdusmas size it at the decision date, then giving 28 day for SVS to pay otherwise 8% intreset will apply, to calculate I needs FTSE Private Investorrs Income Total Return Index, any idea from where I can get it.

It was a little tricky to locate, but there is data on Trustnet, so you should be able to adjust this graph to the specific dates required and then change from % to £ to get the total amount payable per £1000 invested:
https://www2.trustnet.com/Tools/Charting.aspx?typeCode=NPIIP
(for Total Return, keep 'With reinvestment' selected in the Chart Basis)

Do you think I will get something back from my account as I have some cash there. I am hoping that I will have some money back from my account and then i can claim £85K from FCA, my losses are greater than this.

You should get your cash back yes, possibly with a deduction to cover administrators' fees (should only be a small percentage, might be nothing). If the FOS decision doesn't state anything to the contrary, I'd treat that as your money that you are entitled to in addition to the compensation awarded.

However, if the decision was that they pay you the stated compensation as full settlement of your account then this cash would be put towards the total compensation figure and that part of your compensation would be a trust claim rather than an unsecured creditor claim. You should indicate this on your Proof Of Debt form, if and when you come to complete it.

NZPK

I have approx 2 x the 85K protected sum invested through SVS XO. I am resident in NZ and I was drawn to SVS because of their welcoming foreign account holders. I was only ever a self directed / execution only customer and mostly in Vanguard ETFs. I am confident my capital isnt at a very high risk of loss but I am concerned about finding another broker that is open to non-UK resident investors.

Does anybody know of any others? I suppose whatever platform they sell us off to will have to cater to all investors with impacted holdings, UK and overseas based. I am considering the direct with Vanguard approach rather than ETFs via a broker after this little upset.

englishmas

Hi Masonic

first thanks for the response. The decision read " I should be put as close to the position I would be probably now had I have not given unsyitable advice," then it says compare the performance of my investment with the benchmark set out and pay the difference between the fair value and the actual value of the investment. Does it mean that I will get the actual value of my investment + copensation or what is in my account now is no realvent eg total calculate value - current value of the investment or the calculate value and my current investment now belong to SVS.
Very much appreciate if you can untangle this.
My total calculated compensation is much more than 85K and the current investment value is very small. Do you think that I will get full amount ?
Also should I send the caculation to LC now?
Thanks

masonic

englishmas wrote: »

first thanks for the response. The decision read " I should be put as close to the position I would be probably now had I have not given unsyitable advice," then it says compare the performance of my investment with the benchmark set out and pay the difference between the fair value and the actual value of the investment. Does it mean that I will get the actual value of my investment + copensation or what is in my account now is no realvent eg total calculate value - current value of the investment or the calculate value and my current investment now belong to SVS.
Very much appreciate if you can untangle this.

This means that the compensation will be the difference between the performance of your investments over the stated period and the performance of the index over the same period. So if you had £100k invested that was now worth £20k, and the index would have turned £100k into £150k, your compensation would work out at £130k.

Your investments might continue to rise and fall between now and the time you eventually regain control of them or they are sold, but this wouldn't be covered by your FOS decision - this might work out in your favour or against you.

My total calculated compensation is much more than 85K and the current investment value is very small. Do you think that I will get full amount ?
Also should I send the caculation to LC now?

It wouldn't hurt to provide an estimate of the level of compensation based on some stated figures. I rather suspect the amount of compensation you'll eventually receive will be close to £85k + the current value of your investments on the basis that I don't think there will be much, if anything, to distribute to unsecured creditors.

englishmas

Hi Masonic
been intuch with the Lc, no joy , will calulate the compensation by using the link you gave me and send the caculations to the LC with Ombudsman decision. I think will not get all the compesation as it is more than remaing value of the investment with SVS + 85K.
Any further advise would be appreciated.
Thank you very much

manorhouse

Thank you for all the info on this situation.
Can anyone give info or recommend any other brokers for future use.
I do not like paying a platform fees.
There are newish ones i see like Fineco Bank. ( anyone use ? )
Trading 212 .
Interactive Brokers ( but i can not get a phone number , not sure if USA )