SVS Securities - shut down?

Jamesram

RasputinB said:

Michael_Reynolds said:

RasputinB
Aren't we covered under the following?
14.6 We will claim all amounts of any dividends, interest, payments or analogous sums to which you may be entitled in relation to Custody Assets....

I'd hope so but the ANNEX to the T & Cs states "This Annex, which forms part of the Terms, sets out certain additional terms and conditions applicable to the specific products set out herein. In the event of an inconsistency between the Annex and the Terms, the provisions in this Annex shall take precedence".

So, I think that 8.3 in the Annex (apologies for not noting that it was from the Annex) is a problem.

I wonder whether the apparent discrepancy between 14.6  covering  all our Custody Assets, and :-

Annex 1 :  8.3 "We may, but shall not be obliged to, claim and receive dividends, interest payments and other income payments accruing to your investments held by a nominee...." is explicable:-

The word "nominee" does not have an initial Capital letter and is not referred to in the Definitions and Interpretation section of the T&Cs, and my limited knowledge prevents me from having a guess at what sort of nominee it refers to- nominee of Client or ITI.  But I would guess that it cannot refer to the Custody Assets held by ITI Capital as a nominee for us Clients (ie our shares)- it is aimed at a specific situation outwith the general provision of 14.6 which does oblige ITI to claim and receive Dividends paid in respect of Custody Assets.

Please note that I have used the word "guess" twice within this opinion comment. Perhaps someone who knows more could shed light on, in practice, what sort of "nominee" situation is envisaged under 8.3?

RasputinB

I am still thinking of asking for a "reverse transfer" so that LC become responsible for looking after my assets and then they will need to account for dividends etc.

Clause 8.3 of the Reverse Transfer part of the Sale and Purchase agreement includes "it being acknowledged that the Transferor shall be entitled to hold Client Money for Reverse Transfer Clients separately from the Sub Custody Agreement".

That would suggest to me that the Client Money (from dividends) could be removed from ITI. They would still have the shares but there are extra safeguards for Sub Custody assets.

The disadvantage of a reverse transfer is, I assume, that I wouldn't be able to sell shares until they eventually get to my preferred stockbroker. But I have already sold what I needed to through ITI (which they did well enough) and I am struggling to find any other reason for not going for a reverse transfer. Any ideas?

sweetsand

Anyone - have you heard from the financial ombudsman?
If so, how long after your intial contact.
TIA

Jamesram

  Just a note on Dividends and other Client Money held by ITI

ITI T&Cs for Private Clients: S2 Definitions:- “Client Money Rules” means the rules set out in the CASS Client Assets sub-section of the Business Standards in the FCA Rules, and in particular (but without limitation) section 7 Client Money Rules thereof" . So ITI  aknowledge the FCA CASS Rules applicability.

CASS Chapter  6.1.2 provides that :- Firms are reminded that dividends (actual or payments in lieu), stock lending fees and other payments received for the benefit of a client, and which are due to the clients, should be held in accordance with the client money chapter [7] where appropriate.

CASS Chapter 7.12.2.2  states a: "Requirement to have adequate organisational arrangements"

"A firm must introduce adequate organisational arrangements to minimise the risk of the loss or diminution of client money, or of rights in connection with client money, as a result of misuse of client money, fraud, poor administration, inadequate record-keeping or negligence"

So CASS Rules clearly anticipate the need for prevention of "dimunition of client money, or of "rights in connection  with client money" and provide that client money must  be protected by good admin etc.

A basic right, I suppose, is to have one's client money paid out on demand. That is obviously not happening in numerous cases. All grist to  FOS claims . But why  is the FCA apparently allowing this to continue? I will copy  this post to FCA and suggest that they review this Forum for evidence of breaches of good admin causing "diminution of rights in connection with client money"

Monsieur_Bourse

I today received a reply to my official complaint that I made to ITIC, almost to the day just under the 8 weeks limit, so I guess that they are processing the complaints nearest the expiry date first.

They have offered me not a substantial amount in compensation, but I guess that you say that it is a reasonable amount, this is on the understanding that I do not progress my complaint to the FOS. They stated that this is their final offer.

As someone who does not have a UK address I think that I read on this forum that the FOS website asks for a UK postcode to fill in the form, does this mean that I cannot make a complaint to the FOS? I will be telephoning them later today, but does anybody know this to be the case.

Since I made my initial official complaint things have got worse with ITIC, they only supplied HL with my QORT account valuation not the combined total from both Qort and Phoenix, so this has delayed my transfer even further. Also like other on here dividends are not showing as they should be.

Whilst the offer of financial compensation acknowledging that they have screwed up is satisfying, I feel that they deserve to have to face an investigation from the FOS and go through some of the hassle that I and all of us are experiencing.

My2penneth

sweetsand said:

Anyone - have you heard from the financial ombudsman?
If so, how long after your intial contact.
TIA

I had this email earlier this week. I complained 7 weeks ago. 

Dear Sir/Madam

Your complaint about ITI Capital Limited

 

Thank you for the information you sent us. I’m sorry we’ve not been in touch with you sooner.

Like many organisations adapting to the Covid-19 outbreak, we’re having to work differently. For the safety of our staff, and in line with government guidance, our case handlers are currently working from home and we have limited access to our office.

We are receiving letters, but there are delays in opening and replying to them. So please only send us post if you can’t contact us by phone or email.

We’ll be in touch as soon as we can. In the meantime, if you’re experiencing severe ill-health or financial hardship – or your particular circumstances mean that you need our help more urgently – please call us to let us know

Kind regards

Meena Love | Head of customer help teams | 0800 023 4567

My2penneth

Monsieur_Bourse said:

They have offered me not a substantial amount in compensation, but I guess that you say that it is a reasonable amount, this is on the understanding that I do not progress my complaint to the FOS. They stated that this is their final offer.



Since I made my initial official complaint things have got worse with ITIC, they only supplied HL with my QORT account valuation not the combined total from both Qort and Phoenix, so this has delayed my transfer even further. Also like other on here dividends are not showing as they should be.

Ditto regarding the transfer of Qort only holdings.

I would want at least £650 compensation - this is the minimum ITI would face. TBH, I don't want compensation now, I would rather they get hauled over the coals by the FCA.

dustywarrior

brynrogers said:

After watching this forum for week and still having no assets in my Phoenix account I sent an email to out every pertinent person I could find (info on here), and today as if by magic my asset are suddenly there, and they have offered me £100 to keep quiet. From what I can see it used to be £150, but I'm not really happy about taking bribes, I just want me stocks and cash.
How do you withdraw cash from a Phoenix account? or. is this another 'test' being dished out to the tormented?

Hi.

Please can you send me a list of emails you used? I'm sending to all I have (including some guy called Jordan) but I might as well be talking to myself. Getting nothing but stock replies or useless info. I'm going to spam every single one of these incompetent !!!!!! until they finally answer my question.

Thanks

eskbanker

My2penneth said:
I would want at least £650 compensation - this is the minimum ITI would face.

The FOS guidance on compensation is at https://www.financial-ombudsman.org.uk/businesses/resolving-complaint/understanding-compensation - if it was as simple as saying to a financial institution 'give me £650 as that's what you'd have to pay FOS', that would be a very dangerous precedent for the industry, so don't expect them to see that as a benchmark starting point for discussions!

RasputinB

Jamesram said:

  Just a note on Dividends and other Client Money held by ITI

CASS Chapter 7.12.2.2  states a: "Requirement to have adequate organisational arrangements"

"A firm must introduce adequate organisational arrangements to minimise the risk of the loss or diminution of client money, or of rights in connection with client money, as a result of misuse of client money, fraud, poor administration, inadequate record-keeping or negligence"

 Thank you very much for finding the Rule in Chapter 7.12.2.2. I had failed to find that when I'd looked at the FCA Handbook. It would mean that the clause that I found in the ITI's Terms and Conditions would be unreasonable and thus void?
I'd imagine that all of us have 'evidence of breaches of good admin causing "diminution of rights in connection with client money"' and we should all post some of that evidence here so that it can be used to persuade the FCA to act.