SVS Securities - shut down?

markthompson32

I am stuck trying to do a transfer out to iweb as many seem to be. They just told me i need to send a form in  and do an id check to close my account and what iweb send is not sufficient, i thought the receiving broker did it all. Is this the bit I have being missing that has stopped a transfer?

Jamesram

rnf11 said:

Jamesram said:

.....obviously it is quite compelling if you can say to ITI  "Look, get this transfer done or we are going back to Mr Justice Miles because you are taking the p**s in respect of his Lordship's High Court Judgment and Order of 7 May"-

...and the mechanism for doing that is???

Well this is rather what I was getting at - there is power to revisit the Order of a Judge, and an application can certainly be made for the issue to be heard by the particular Judge who made the Order- it won't automatically be granted of course; Judge might be unavailable. So then there is the question of the standing of an individual to make an application- we are not parties to the original claim so unless LC were to do it for us (fat chance) the individual would have to asked to be joined in to the proceedings, as a person having an interest.Not surprisingly there is law on this- Josl's solicitor, at least, apparently felt it was feasible (you are not supposed to state a course of action unless you believe you can do it, as a solicitor).

Then the next  question is: Is the matter complained of actually covered by the proceedings heard on 7 May in the High Court? As I said, I personally am rather curious about this, but again, Josl's solicitor believes it is. They may be relying on The Investment Bank Special Administration Regulations 2011 (“the Regulations”) which cover the transfer from the Administrators to ITI - "Regulation 10 provides that a special administrator has three special administration objectives. Objective 1 is to ensure the return of client assets as soon as is reasonably practicable. First, account must be taken of the purpose of the distribution plan under the Rules, which is to assist in the achievement of Objective 1 of returning client assets as early as possible." and "The court must be satisfied that the plan provides a fair and reasonable means of effecting the distribution of the client assets to which the plan relates": notes Miles J. at paras 16 and 32 of his judgment. Maybe that is what would give the individual client the right to complain that Objective 1 has not been "ensured". - it is very complicated though- is it just the Plan which has to be satisfactory, or does Objective 1 cover events following implementation of the Plan?

Interestingly, nowhere in ITI's Terms of Business (which are annexed to and therefore part of the Distribution Plan under the Order) can I find any specific provision dealing with transfers OUT. Transfers IN are dealt with, but unless I have missed it there is no reference to a right to transfer out. (Although for ISA's there are other financial rules which provide a framework.)

Miles J also said,,at  para 37 " Provision is also made for any client who does not wish to remain with the Nominated Broker..... under the terms of business that have been negotiated, to move to another firm......"  Well fine, except I can't actually find a provision. But maybe this is a bit of a "red herring" - or maybe it is the " 6 months fee free transfer" that the Judge means is a "provision"? EDIT - I now think the Judge is definitely referring to the "New Terms" letter to Clients which was Schedule1 to the Distribution Plan and sets out the time limited fee concessions amongst other things.

Lastly I  did find this in the Ts of B- 28.4     "Where the Agreement specifies a time or period by which we or you must carry out responsibilities under it, we must both keep to these time scales and time will be of the essence in respect of those obligations. If there is no timescale given, any responsibilities must be carried out within a reasonable time in all the circumstances. We may serve notice on you, and you may serve notice on us, stating that legal action may be taken if the obligations and responsibilities are not met within a reasonable time period.

I don't think this adds anything much to ITI's legal obligations, but it may be useful to quote back at them, and the FOS, alongside the Consumer Rights Act 2015. Time of the essence means a strict time limit is imposed and is essential to the contract, but off the top of my head I am not sure any particular time limit could be applied here- no matter "reasonable time period" should do us.

Monsieur_Bourse

markthompson32 said:

I am stuck trying to do a transfer out to iweb as many seem to be. They just told me i need to send a form in  and do an id check to close my account and what iweb send is not sufficient, i thought the receiving broker did it all. Is this the bit I have being missing that has stopped a transfer?

My shares and cash were transferred into my HL account yesterday, at no time did I fill in any form at the ITI end regarding my transfer out, I just completed the transfer form on HLs site, and sent off my signed part of it to HL and after about 2 months the shares have now been transferred into my HL account.

As galling as it may seem, perhaps you should jump through the hoops that ITI are demanding to try and speed up your transfer out. Sadly it is not as though you can phone them to enquire as to why they want you to complete an extra form.

Jamesram

markthompson32 said:

I am stuck trying to do a transfer out to iweb as many seem to be. They just told me i need to send a form in  and do an id check to close my account and what iweb send is not sufficient, I thought the receiving broker did it all. Is this the bit I have being missing that has stopped a transfer?

Well it may not be the only thing Mark but it won't have helped. You need to request one by email. Don't use ticket request system on Qort page - I don't think it will get a response. ITI staff were insistent with my partner and I that we had to go through the charade of downloading, completing and uploading a fairly scrappy document, Page I of which requires bank details- not yours, unless you actually want any cash sent to you, but the bank details of iWeb's bank which is Halifax Share Dealing services- their account number and sort code, obviously, and your iWeb account reference. Page 2 should have your ac entered-if not, put Qort and Phoenix.  Reference and date- should already be entered. Then asks various questions Transfer? YES Stock code- all in my account no.. Name of Cparty -iWeb + iweb account References- Name of Nominee Holder ? IWeb? C of Incorp Don't know-.Reference doc- see iWeb transfer request (copy attached if you have it) .Your name and sign it and you are good to go.

NOTE If anyone has a good method for  getting this wretched Closure Form sent out, could you post about it please. I am out of touch now.

My2penneth

Thanks James,
Re Dividends in Qort - I have just sent off an email to R.A. with copy to Kaher Ahmed who is his deputy. I have copied to their legal person (A. Kulsharipoiva) and I have given then 2 weeks to answer the question. After that, I will initiate a claim in the small court.  

Based on the information (lack of) in Qort it is not apparent if a dividend has been paid. I have asked ITI Capital several times for a list of dividends paid - no reply. I genuinely feel that dividends have not been paid into our accounts. 

Nbs222

just received ITI Capital Limited: Terms of Business (the “Terms”) email.

regarding fees

Fees

The fees payable by you to ITI for the Services provided under the Terms are set out in the Rate Card. In addition:

1. ITI will not make any changes to the Rate Card prior to 23 November 2020;;
2. following the Effective Date, to the extent that you instruct ITI either to transfer your cash and/or assets to a third party not associated with ITI prior to 23 March 2021, ITI shall not apply any exit fees or other transaction rates, charges or commissions on such transfers to you, save that ITI shall debit any stamp duty, stamp duty reserve tax or any other transaction tax applicable to any such transfer as required by Applicable Regulations (as defined in the Terms);
3. for the period  up to 23 March 2021, ITI shall ensure that the fees payable by you under the Rate Card shall be equal to the fees you paid for comparable services under the standard SVS terms of business (or, where you are able to evidence an alternative fee arrangement between you and SVS, that alternative fee arrangement).

Emillion1

manted said:

rnf11 said:

pafpcg said:

 I have this suspicion that the "authorities" are avoiding dealing with the mess at ITI because they don't want to become responsible for sorting it out.

My view on that is that it is really because they were so closely involved with the LC decision making process.

There is an interesting angle -  never developed - re the identity of the "runner up" to ITIC. I have never been able to discover the identity of the ex SVS person who was said  by the FCA to be associated with them, and therefore advised against their selection.

Could hardly have done a worse job. 

Folks might be interested in knowing that in case of Reyker securities (went bust similar to SVS after FCA pulled the plug in October last year), out of the 5 brokers that the accounts will be transferred to, one has 2 ex Reyker employees at a position of significant responsibility.
https://citywire.co.uk/wealth-manager/news/trapped-clients-in-1bn-dfm-see-light-at-end-of-tunnel/a1416346?ref=wealth-manager-most-popular-list

How do you know there was an ex employee interested or if the story is true?

Jamesram

My2penneth said:....
Based on the information (lack of) in Qort it is not apparent if a dividend has been paid. I have asked ITI Capital several times for a list of dividends paid - no reply. I genuinely feel that dividends have not been paid into our accounts.

My experience with SLA £243.31 divi was this.

Paid date 29 Sept - No entry in Qort

checked  13 October    ditto

Chris Smith says credited to Qort 15 October

Checked 22 October   Qort shows £486.62 ie £243.31 x2 !

So yes, the Divis are coming in to ITI on due date- I am sure, but they are taking  2 weeks + to post them to the client account

Josl

Jamesram: Provision for protection of clients (to revert/transfer out) exist in the SPA (document not released to clients) , references to this provision and the insolvency law protections have been stated in the explanatory statement (issued on 24-April) from page 11 onwards > PART 2: TRANSFERS AND DISTRIBUTIONS.
One may argue that by not following instructions from clients ITI breached these protections and by not providing a transfer out clause in its own terms directly affected many clients which was prohibited by 6.11 (b) (ii) (C) as materially adversely affect any Client's ability to transfer to another broker or return their Client Assets.  

You re right, there's no transfer out clause in ITI's terms only FAQs provide this info,

If it is a cash transfer to your own bank account, we will action this immediately
If it is a broker transfer, we will action when instructions are received from your existing broker as described in point 6.

Many if not most will vouch that ITI did not follow the procedure laid out on its website.

Monsieur_Bourse

My2penneth said:

Thanks James,
Re Dividends in Qort - I have just sent off an email to R.A. with copy to Kaher Ahmed who is his deputy. I have copied to their legal person (A. Kulsharipoiva) and I have given then 2 weeks to answer the question. After that, I will initiate a claim in the small court.  

Based on the information (lack of) in Qort it is not apparent if a dividend has been paid. I have asked ITI Capital several times for a list of dividends paid - no reply. I genuinely feel that dividends have not been paid into our accounts. 

My2P I think that I will do the same for my wife's account. She had a dividend appear in her Qort account which matched the amount it should be, now showing in her Cash Statement in Qort there has been a withdrawal for the same amount, which she has not instigated. Still no sign of her RDSA dividend that should have been paid in on the 21st September. She has e-mailed the accounts department and added an additional complaint to her formal complaint. No surprise no response from either to date, so I think that it is time to start threatening again.I think that you are being generous in giving them 2 weeks, my time line will be a lot shorter.