SVS Securities - shut down?

masonic

johnburman wrote: »

If I am wrong which ordinary XO clients let alone IFAs knew and how did they know?

This is the sort of thing someone might have turned up when doing some research before taking the plunge with SVS. The problem is that SVS hiked its fees in c.2015, whereupon people like me voted with our feet and moved elsewhere, and interest from new investors looking for a platform waned.

Perhaps this highlights that due diligence into the companies with which you do business should be an ongoing process. Though one would need to go beyond the usual sources of Companies House and The Gazette to turn up something like the above.

johnburman

All agreed but doing a search of interlocutory orders made in court cases that are not in the Law Reports may be more than 'due diligence'.

You are right about the fee hike tho with no prior warning for XO clients as I recollect.

I did look at segregated funds on the Stock Exchange website then and there was reassuring stuff about why you should deal with a Member of the exchange and the fact that your shares would be safe as they would be segregated. I can't find that page now! Any ideas what happened to it?

Emperor2014

Hi all

Thanks for the regular updates - found them really useful. Given that we're all in the same boat, thought i'd share some new information. I had an email from FSCS on the 22nd of August suggesting fake letters have been sent to some SVS Securities account holders. So just be vigilant as not all letters you receive may be genuine.

This is what the email said

Warning

We have been made aware of a fraudulent letter that claims to come from the Special Administrators Leonard Curtis. Please ignore the letter. For more details visit the SVS page on the Leonard Curtis website.

If you haven’t already, you can sign up to receive email updates on the SVS Securities situation on our website. Whenever we have an update, we’ll send you an email to let you know the latest news.

I've also had phone calls from 3 separate people - purporting to be investment managers - who seemed to have all my details. Seems like SVS customer details have been leaked in a big way

Emperor2014

I do still have a few questions as to how we might get our investments back. Would be grateful if anyone can shed some light.

1. Will we be given cash (i.e. once our shares held are sold), or will we simply be granted access to trade our existing investments?

2. If we are to receive cash, how will the value of the shares be determined. Will it be the value of shares as at the day SVS ceased operating, or as at some as yet unspecified date when our cash/investments distributed to SVS account holders?

Given that if SVS was operating normally, we theoretically could have sold our shares at the highest market value on any given date between the 5th of August (when SVS ceased operating) and when our cash/investments will be redistributed to us. My question is

3. If the value of our investments have since fallen, will we receive compensation?

I think we should receive compensation because (a) our investments may be subject to normal market movements, but under normal circumstances we would be able to minimise losses by selling our shares at the highest market value; and (b) any loss under the current circumstances in my professional opinion are not our own doing, but a direct consequence of SVS ceasing to operate, which I think FSCS compensation should be given for.

4. If we are to receive our shares rather than cash, given that they were originally held in CREST nominee form by SVS, will we receive share certificates in our own name?

5. If we are to receive share certificates, who will bear the cost of issuing share certificates (. It seems rather unfair that we should bear the cost, given that SVS' failure was not our doing and certainly beyond our control.

Palefountain

I have also had a scam caller & an Email from a company called "Asset Recovery LTD" who said they were working in conjunction with Leonard Curtis to ensure funds were returned quickly. They had my name, email address and the amount I have invested at SVS!

I contacted LEONARD CURTIS on their hotline and they confirmed it was a scam (I was never in any doubt about that) I asked how they had obtained my details and they said they weren't sure if they had been hacked or whether they had been taken by a previous employee of SVS!!

gadgetmind

Wow, this one stinks.

Alexland

Palefountain wrote: »

I asked how they had obtained my details and they said they weren't sure if they had been hacked or whether they had been taken by a previous employee of SVS!!

I don't see how SVS could have got into this situation without a few employees of dubious morality.

johnburman

For Asset Recover Ltd, you need to look at this link from the Insolvency Service
https://www.gov.uk/government/news/investigation-leads-to-shutdown-of-asset-recovery-company-that-recovered-no-assets

All need to use EXTREME CARE... there are 13.5k very worried investors out there and the 'sharks' know it

masonic

Emperor2014 wrote: »

I do still have a few questions as to how we might get our investments back. Would be grateful if anyone can shed some light.

1. Will we be given cash (i.e. once our shares held are sold), or will we simply be granted access to trade our existing investments?

2. If we are to receive cash, how will the value of the shares be determined. Will it be the value of shares as at the day SVS ceased operating, or as at some as yet unspecified date when our cash/investments distributed to SVS account holders?

Given that if SVS was operating normally, we theoretically could have sold our shares at the highest market value on any given date between the 5th of August (when SVS ceased operating) and when our cash/investments will be redistributed to us. My question is

3. If the value of our investments have since fallen, will we receive compensation?

I think we should receive compensation because (a) our investments may be subject to normal market movements, but under normal circumstances we would be able to minimise losses by selling our shares at the highest market value; and (b) any loss under the current circumstances in my professional opinion are not our own doing, but a direct consequence of SVS ceasing to operate, which I think FSCS compensation should be given for.

4. If we are to receive our shares rather than cash, given that they were originally held in CREST nominee form by SVS, will we receive share certificates in our own name?

5. If we are to receive share certificates, who will bear the cost of issuing share certificates (. It seems rather unfair that we should bear the cost, given that SVS' failure was not our doing and certainly beyond our control.

1. It is too early to know the answer to this. There is still a chance the accounts could be sold to another provider, in which case you'd regain access to your existing investments. Otherwise you might be permitted to reregister them to another broker, or the administrator might dispose of them and pay you the proceeds subject to any necessary deductions, such as fees.

2. The investments will be sold to the market. You will receive the market price at the time they are sold.

3. No. There is no compensation available for investment losses from direct investments in shares. (I note you've given your 'professional' opinion, which differs, but you've failed to state your profession and professional qualifications)

4. That's at the discretion of the administrators. A simple reregistration to another nominee is another possibility.

5. That's three layers of 'if' I've counted. It will take you a very long time to consider every possible possibility, but in answer to your question, the convention would be for investors to bear the costs of asset realisation and distribution, with the ability where appropriate to recoup those costs from the FSCS.

masonic

It will be interesting to see if anyone outside the UK is contacted by the scammers. Perhaps they will provide better customer service than LC