SVS Securities - shut down?

SteveJohnson56

My two Individual Phoenix accounts now have cash and all my shares showing.
One of which should be an ISA still does not appear to show.

Most worrying for me both accounts show as having  'Buying Power' of 4X the amount of cash in these accounts, WHAT DOES THAT MEAN? HAVE I NOW GOT EFFECTIVELY GOT 4X AVAILABLE CREDIT, ABLE TO BUY ON MARGIN, EVEN MENTION  ABLE TO GO SHORT, NOT AT ALL WHAT I HOPED TO SEE AT ALL?  AND ONE OF THOSE ACCOUNTS IS SUPPOSED TO BE AN ISA!

Checking through my emails I do actually have the Rate Card for October 23 2020.
Looks like they have done away with the ISA management fee of 30bps per annum, minimum £7.5 per quarter.

Now just a Custody Fee only:- Dependant on total assets invested, Month end snapshot on asset value,  25 bps per annum.
https://iticapital.com/assets/pdf/Rate-Card-october-2020.pdf

bnet

Hello everyone,
A couple of weeks ago you recommended me to write David Mos an email. Well, I have to tell you that I spammed him threatening to go public to the media, not before I told him that I was going to the nearest police station to report him for what I thought it was a financial crime.
 
He replied me very quickly and he involved his team to solve the issue. I kept sending him emails every 24h and openning tickets every day. Finally, the asked me to fill-in the form for cash withdrawal (you can find it in FAQ section) and they transfered my cash into my bank account.

What a relief...

But my portfolio of shares are still held by these !!!!!!. They sent me the Phoenix account credentials which still says that my account is pending of approval. And in ITI Capital account, I see my portfolio multiplied x2. 

Is there any way I could transfer my shares to a new broker? Or would be faster to wait Phoenix account to be validated? Or may be... I could call them and sell the shares and then do the same process I did to withdraw the cash... 

SteveJohnson56

When you submitted the cash withdrawal what was the date, how many days did it take to hit your account?

johnburman

Contact your new broker for a transfer in to them form. 

BTW why would anyone stay with a broker who doesn't answer the phone and doesn't deal with queries or complaints? Even if one ignores their fees including the custody fee why on earth would you stay with ITI if you are an XO client? 

shiznit76

bnet said:

Hello everyone,
A couple of weeks ago you recommended me to write David Mos an email. Well, I have to tell you that I spammed him threatening to go public to the media, not before I told him that I was going to the nearest police station to report him for what I thought it was a financial crime.
 
He replied me very quickly and he involved his team to solve the issue. I kept sending him emails every 24h and openning tickets every day. Finally, the asked me to fill-in the form for cash withdrawal (you can find it in FAQ section) and they transfered my cash into my bank account.

What a relief...

But my portfolio of shares are still held by these !!!!!!. They sent me the Phoenix account credentials which still says that my account is pending of approval. And in ITI Capital account, I see my portfolio multiplied x2. 

Is there any way I could transfer my shares to a new broker? Or would be faster to wait Phoenix account to be validated? Or may be... I could call them and sell the shares and then do the same process I did to withdraw the cash... 

what's his email address?

johnburman

David Moss
Head of Compliance

T:  +44 (0)20 7562 8000 | E: david.moss@iticapital.com

ITI Capital Ltd. Level 33 Tower 42, 25 Old Broad Street, London EC2N 1HQ.

Jamesram

I am mulling over other remedies than FCA  FSO complaints

Consumer Rights Act 2015 states basically, in realtion to supply of services, including professional services, that amongst other things:(culled from a "Which" webpage):

• "The trader must perform the service with reasonable care and skill.
• Unless a particular timescale for performing the service is set out or agreed, the service must be carried out in a reasonable time."

     All  relevant to ITI.  However the problem is with the remedy available:    If the service you’re provided withdoesn’t satisfy these criteria, you’re entitled to the following remedies under the Consumer Rights Act: "Which " quote:

• "The trader should either redo the element of the service that's inadequate, or perform the whole service again at no extra cost to you, within a reasonable time and without causing you significant inconvenience.
• Or, in circumstances where the repeat performance is impossible, or can’t be done within a reasonable time or without causing significant inconvenience, you can claim a price reduction. Depending on how severe the failings are, this could be up to 100% of the cost, and the trader should refund you within 14 days of agreeing that you're entitled to a refund."

So no criminal liability applies, and failure only gives a right to price reduction which is of very limited assistance (although could help if we get into Custody Fee territory)

But the Act DOES form a simple framework for a damages claim for breach of contract- the trouble is it is difficult to claim damages for inconvenience distress etc in English law contract cases:-

"General damages for breach of contract are as a rule not recoverable to compensate for injury to reputation, feelings or mental distress. A long-established line of authority including Watts v Morrow and Farley v Skinner holds that to fall within the exceptional category of cases in which damages for distress can be recovered, a major or important object of the contract must be to give pleasure, relaxation, or peace of mind." Thank you Mills & Reeve solicitors  https://www.mills-reeve.com/insights/publications/damages-for-distress-and-psychiatric-injury. We might pursuade the Court that a major object for ITI as regards SVS clients was to provide that peace of mind after a year of being locked out of funds.

Anyway, just initial thoughts- as Mills & Reeve also say " a more relaxed attitude is taken by bodies such as the Legal Ombudsman and the Financial Ombudsman Service (see for example the FOS guidance about “compensation for trouble and upset”)"

The issue might rest on which is likely to be more hassle and delay- the FSO or a "small claim" (up to £5K I think- used to be) in your local County Court, for which a Court fee would be payable (recoverable if claim succeeds) to issue proceedings. That would at least require ITI to take action- ie to Defend or Admit, in default of which you could enter a judgment within 3 or 4 weeks, for damages to be assessed.

I have also been wondering about  a complaint to Trading Standards but have not got very far with this yet- they tend to concentrate on criminal enforcement, which I am not sure has any application here.

Maybe there are some legal beagles out there who know more about the realities of these possible options? My idea is to try to impose any pressure possible on ITI to get a grip.

 I am not looking for a fight for the sake of it- personally I would just like my shares and cash with iWeb- end of story excepy maybe some FOS comp eventually. But if any of these lines of threat, or actual process, could achieve the necessary results  for all of us I think they should be explored and if appropriate acted on.

shiznit76

Just find it perplexing that my portfolio is correct some days and then others a chunk of my holdings just disappear  

shiznit76

Right, in my dashboard it is showing that i am missing a chunk of holdings out my Qort account and the Phoenix one is empty. Log in to Phoenix platfrom and the missing holdings are there. Now, i used my account number on for Qort account for my shares to be transferred, is this now going to mean i will need submit another transfer request for those been moved over to Phoenix?

RasputinB

Jamesram said:

I am mulling over other remedies than FCA  FSO complaints....

If you are making a claim for money only, you can claim online at www.moneyclaim.gov.uk I haven't looked into this fully as I don't have a UK address and therefore I doubt that I can use the service. The maximum is £100,000. I'd say that if you'd asked ITI Capital to transfer cash out to your bank account and they had failed to do so without delay you could make a claim for loss of interest at the Statutory Rate which I think is still 8%. For commercial cases I think there is a fixed amount of £100 for compensation towards costs of making the claim. If a few are interested in this sort of approach it might be worth working together to make it easier for each to claim. The FSO will award compensation for Distress and Inconvenience but are likely to take the stance that we can move to another stockbroker free of charge and can (maybe) deal by phone so we have little to complain about!