SVS Securities - shut down?

bowlhead99

johnburman wrote: »

1 XO clients have assets that belong to them not to SVS. They are not true 'clients' in the sense they do not deposit money to be used by a bank, but they pay for transactions...they are beneficailly entitled to *their* (client) assets and (client) money.

2 Because of 1 payments shodul be quicker not slower (!)

As you agree, the SVS XO clients do not have deposits because SVS is not a depositary business. So, FSCS depositary protection does not apply and you can forget getting a quick payout of your deposited cash.

Yes, these execution-only clients are entitled to their client assets and client money, if it exists. What currently exists is a load of client assets and a pool of client money. After LC have finished sorting through it all (and taken their costs of dealing with and distributing the client assets and cash, out of the client assets and cash), the remainder of the client assets and cash can be distributed to its owners (e.g., you).

As LC are arranging for client assets and cash to be put back into the hands of the clients (e.g. by transferring investments to another viable nominee/ custodian business), and have not yet finalised the claim process, it would be pretty surprising if the FSCS sent you a cheque for that money tomorrow: because your assets still exist and are in the process of being sorted through and returned.

I have not been following the entire thread so don't know whether you have seen and understood the FAQs published at https://www.leonardcurtis.co.uk/wp-content/uploads/2019/09/Consolidated-FAQs-12.09.2019.pdf

englishmas

My claim is the to recover the compensation awarded by the ombudsman against SVS, wrote to LC, they told me my claim is nothing to do with them and I have to take up with FSCS, I have written to FSCS twice and no response. Then I am told that anything relate to SVS will be consider until LC finish their work.
So I am stuck, any suggestions

bowlhead99

englishmas wrote: »

My claim is the to recover the compensation awarded by the ombudsman against SVS, wrote to LC, they told me my claim is nothing to do with them and I have to take up with FSCS, I have written to FSCS twice and no response. Then I am told that anything relate to SVS will be consider until LC finish their work.

LC as special administrator probably have lots of people claiming all sorts of things from them at the moment. If the ombudsman has told SVS Securities plc to pay you out a compensation award, and SVS have not yet paid you, you will be just one of many creditors of SVS. There are lots of people to pay and not enough money to go round. LC will be looking to wind up the company or transfer its business in the best interests of its creditors, and you are one of the creditors.

If your compensation is not eventually paid by the company, or only partly paid because they can't afford to pay all that they owe, FSCS may step in for the shortfall (within limits). But at the moment, SVS still exists as a regulated entity and LC have not finished their work to return client assets/client money and to rescue/wind up the company in the best interests of its creditors. Only once that work has finished, and it's known whether they were able to pay you anything, can FSCS get involved.

It seems too early for FSCS to pay you out now. The usual steps with your situation would be:
- ombudsman makes a direction or money award;
- customer waits for the actions to be taken or money to be paid;
- if it doesn't happen, customer goes back to ombudsman and tells them it hasn't happened;
- ombudsman follows up with company
- if company fails to pay because they are out of business, customer goes to FSCS and makes a claim.

The first thing for you to do is to go to ombudsman and say that the compensation you were awarded hasn't been paid within a reasonable time, please could they follow it up. They would then contact SVS/LC themselves, or advise you of next steps.

Another thing you could do is to go to LC and say you want to check that you are on the list of creditors in relation to the compensation award which FOS had directed to be paid to you. Though it seems it might be better to try and have FOS do that for you.

It doesn't seem like the time is yet right for you to go to FSCS and make a claim that LC was wound up without you being paid out, because LC has not yet been wound up.

manorhouse

Have we gone back to suggesting XO clients will not get all there shares back in full ?

englishmas

Hi Bowlhead99

Thanks for the response.

according to ombudsman compensation calculation my compensation way above the 85k, I thought it will be the case as you suggested, I wrote to the LC , they told me that it is not in their remits to deal with the compensation part of my claim , only the remaining assets with the SVS.
I went back to the FCS, they told me as for as they are concern my case is closed as Judgement has been made and I have accepted it and advice me to contact FSCS.
I wrote a letter to FSCS saying that as the compensation part of my claim is not being consider by the LC so can I ask then (FSCS) to pay this part, but no response , as you may know that any compensation awarded by the ombudsman is subject to 8% interest and this is due now.

I have some remaining shares and cash in my SVS account , i presume with time I will get back from LC, but I am not clear how to go about getting the compensation. ( though it is more than 85K and I am hoping that I will get 85K from some one. 8% interest is due from this month also.
Any suggestion please.

bowlhead99

manorhouse wrote: »

Have we gone back to suggesting XO clients will not get all there shares back in full ?

Had we gone away from it?

It is not known whether they will get their assets back in full, because the special administrators haven't finished their assessment to confirm that the supposedly ring-fenced assets all exist (at least, that is what they said in the most recent version of the FAQ) ; and once they have finished their assessment and get into the distribution process, they are entitled to take their costs of dealing with and distributing the client assets and pool of cash, out of the client assets and pool of cash.

Investors may qualify for FSCS compensation if they get back less than what SVS was holding for them, so may still overall get their value in full, even if they don't 'get there shares back in full'. The FAQ from a few days ago was linked above.

englishmas wrote: »

I have some remaining shares and cash in my SVS account , i presume with time I will get back from LC, but I am not clear how to go about getting the compensation. ( though it is more than 85K and I am hoping that I will get 85K from some one. 8% interest is due from this month also.
Any suggestion please.

LC probably don't have much interest in paying your compensation claim ahead of anyone else's claims on the company's assets. If it's not within LC's remit to deal with deciding whether or not to agree to process a FOS money award (as they do have a limited remit), you probably shouldn't expect to have it paid by SVS before SVS winds up. All you can do is wait until they have finished paying everyone out (including returning your shares and cash) and then - assuming they don't pay you the compo as part of that process - go to FSCS and claim to be compensated by them for the obligations of the failed firm.

englishmas

Hi

in fact it was LC who advice me to go to FSCS as they will not consider it

manorhouse

and once they have finished their assessment and get into the distribution process, they are entitled to take their costs of dealing with and distributing the client assets and pool of cash, out of the client assets and pool of cash.

We know with Beaufort they just paid the the administrates directly and negotiated a discount by doing so why do you think they will not do the same here ?

Posted at 8.32 PM UK time....showing as 7.31 PM.

masonic

englishmas wrote: »

My claim is the to recover the compensation awarded by the ombudsman against SVS, wrote to LC, they told me my claim is nothing to do with them and I have to take up with FSCS, I have written to FSCS twice and no response. Then I am told that anything relate to SVS will be consider until LC finish their work.
So I am stuck, any suggestions

I second bowlhead's suggestion to go back to the FOS and let them know SVS has failed to pay the compensation and is now in administration, and that the administrators have stated they will not consider the decision. They may be able to facilitate your claim to the FSCS or at least advise you of what to do next. But the maximum you'll get from the FSCS is £85k, so you really need your claim to be lodged as a creditor of SVS so that if there are any remaining assets in the business that can be used to repay unsecured creditors, you will get a share.

masonic

manorhouse wrote: »

Posted at 8.32 PM UK time....showing as 7.31 PM.

Showing as 8:31 for me. There is a problem with the time zone settings on your forum profile or your computer/device.