SVS Securities - shut down?

Wilks16

I haven't seen anything specific this morning. I called the Financial Services Compensation Scheme hotline this morning. They were less than helpful. The guy wasn't willing/able to tell me anything at all. I was told to just check their website regularly 'over the course of this week'.

Jamesram

Hi all. I have £250k stock with SVSX-O trade ac and ISA ac so a bit concerned! Phoned FCA- are aware but could give no info on sitn. Seemed to me this was not an FCA intervention tho. I said I wanted to lodge a complaint on SVS as to lack of info to clients etc- made me feel a bit better if nothing else! As regards what happens next it MAY help people to check out (serach online)the Beaufort Securities saga last year and how private individuals got their share holdings(inc ISAs) transferred to The Share Centre as new broker (although could then appoint own broker of choice w/out cost, within 3 months) No lost money or stock or divis etc.. PWC admininstrator got paid direct from FSCS- no claim had to be made byPIs. Downside was no ability to trade or receive divis or cash on a/c for several months whilst all being sorted. Assume likely to be similar here (and again assuming of course SVS are bust, rather than on summer hols and forgot to mention it). Hope this might reassure a bit -still very annoying and disconcerting though.

My2penneth

If you have upto 85k in cash/shares (cash and shares to a total of 85k ) with SVS you are fully covered by the FSCS. Your dividends would be collected and distributed by any appointed administrator.

More likely, all shares,monies,dividends would be transferred to another platform..but this process might take months (might = very likely).

If you have more than 85k then you are covered for losses upto 85k. Joint accounts...just double the figures. Note , I say losses. Say you had 160k in shares and they discovered that 50% of the shares were missing from the ring fenced, pooled nominee accounts ( unlikely with an FCA Regulated body such as SVS . So, you're holding only 80k in shares and the other 80k are "missing". Then your "loss" is 80k...but this is still under the 85k limit.

Google Beaufort Securities but only look at articles from end of last year...it all turned out ok. and the FCA did a very good job ( no links to the FCA! ).

Wilks16

Thanks for the thoughts here. This gives me hope that there is a route which will allow us to reclaim our investments.
One area that I'd appreciate thoughts on is around unused funds that were in the account at the time that SVS closed. I was collecting divi payments to later roll into stock purchases. There are no paper records. The site is offline. How do I prove what funds were in the account?
I think My2penneth might have just answered this:

"more likely, all shares,monies,dividends would be transferred to another platform"

I suppose the FSCS will provide guidance here.... in their own time.

Murphy_The_Cat

Toki wrote: »

Anyone been through similar with Beaufort Securities?

Often referred to as verminous scum by some people.

My2penneth

p.s. the 50% figure was" made up"....such a scenario would definitely equal jail time! (There might be a very very small % of errors due to human error ...enter the FSCS to cover this loss )

The shares will be in ring fenced accounts. We are NOT the owners of our shares, they are in a nominee account with SVS. An administrator would have to, as part of their duties, check your holdings in each company against what is held in "the pool".

What do I think will happen?

Worse case....things will be tied up for say 6 months before every account ...to the penny...is handed over to another platform.

Of course, SVS might be allowed to continue to trade by the regulator ( FCA).....

Jamesram

With respect, My2penneth, what you say is absolutely correct but might be read as a bit alarming for private investors with over £85k/150k at stake. The fact is that there is NO reason to believe that the stock held in the SVS Nominee accounts with clients as the beneficial owners is not there in proper order. Times have been tough for smaller brokers and as one of the lowest charging oufits it is maybe not surprising that it is they who have gone bust (if the rumours are true). That is quite different from the major fraud, thd#eft emezzlement that would have to take place to "raid" the ring-fenced Nominee accounts. There is absolutely no evidence or even slightest indication that SVS have carried out such criminal acts, and as I indicated in my first post, it did not qappear when I spoke to FCA that any misconduct action had been actually initiated (contrast Beaufort Securities). Further, even in a worst case scenario where theft from the Nominee account had occured I believe it highly unlikely that the gov't and/or industry would allow the reputation damage to private ISA holders suffeerring loss, and there would be full compensation, although that of course is just my own speculation and personal opinion, which could be wrong. Anyway, my main point is that there is absolutely NO evidence that investors stockholdings and cash are not perfectly secure within the Nominee accounts, awaiting transfer to a solvent stockbroking outfit.

My2penneth

Toki.....you are fireproof on your holdings...you are below the 85k limit.

[Deleted User]

Wilks16, my sympathies are with you and everyone worried about this. It looks like everything will turn out okay, but this doesn't alleviate the worry while things work through
I'm not with SVS but have an ISA with another smallish platform operating in a similar fashion. I have occasionally worried about the lack of paper records in the event of the website going down. I have decided to do a weekly download of the portfolio and cash account (particularly the cash account) in case I ever need "proof" of how much I am holding in my account.

My2penneth

Hi Jamesram...
Our posts probably crossed. Iagree with you regarding ring fencing of shares by SVS 100%. There might be a few discrepancies but these will be negligible.

The first post was to try to emphasise the 85k figure relates to LOSSES of upto 85k...not simply 85k in ones account.