SVS Securities - shut down?

Sheris

johnburman said:

My2p it is difficult to know. We don't know what effect the FCA has on iti or rather had at the time. My guess is something but not as much as we would have liked. A terrible indictment of the FCA and the FS industry generally AND an encouragement almost to other poor operators. But the problem was... What good to anyone had the FCA shut down iti? Could they have forced it to merge with a better group...but even then how do you merge it systems? Would you want to use or merge with ITI's if you were a big player? 

Spot on with your statement.

johnburman

 Is there also an argument, based on the FSCS protection limit, for splitting assets in a larger portfolio across more than one intermediary?
Yes.  You are covered for a loss of a MAX of £85k, double that for joint accounts.  Now in the rare and nightmare situation that the broker 'lost' or was dishonest with your assets, you are covered to £85k. MAX, and not a penny more.  The figure of £85k is too low where people have their retirement savings in say an ISA.  Brokers could have a separate guarantee over that figure from a major clearing bank or say Lloyd's of London, but they do not (I wonder why not).  So for the very prudent splitting up your assets is sensible.  This may be particularly so in the case of the new commission-free brokers.  I do not know the position but it would seem to me that those that lend shares out, and charge no commission are more likely to get into difficulties than other brokers.  There is no evidence that this would cause a loss - very few XO clients actually lost £ from SVS, the FSCS paid it directly on a scale to LC.  BUT there is the huge time delay of resolution of the problem (in SVS's case 13 months), and there is the "risk" and the worry that assets will go missing. So it is sensible to split up a large portfolio.        

GeorgieC

johnburman said:

  This may be particularly so in the case of the new commission-free brokers.  I do not know the position but it would seem to me that those that lend shares out, and charge no commission are more likely to get into difficulties than other brokers.        

Be wary of the commission free brokers which are gathering pace in the USofA. Essentially they offer you free commission but instead of routing orders to say the NYSE, they send them direct to a market maker. That market maker may not be the best price available but gets sent the order anyway, and in return he pays the broker a fee. This is called payment for order flow and the practice has been outlawed in the UK. Robinhood have already been hauled over the coals. All that glitters ain't gold......
https://www.financemagnates.com/forex/brokers/robinhood-hit-with-65m-fine-for-selling-orders-to-third-parties/

MK62

I'm finally free.....my shares were transferred to IWEB yesterday.
Coincidentally (or not), it's 8 weeks to the day since I lodged my "official" complaint........hmmmm........
Just got to get ITI to close the accounts and that should be it......or is it???

Almost 18 months.......unbelievable really, this day and age......big lesson learnt there though!

Good luck to those who are still trapped......surely this saga must be drawing close to conclusion for everyone now!!

manted

Congrats @MK62, I'm unfortunately still stuck with my cash misplaced by ITI backoffice. They were supposed to transfer it to my new ISA broker on the 14th and instead seem to have sent it elsewhere. Have raised this with FOS who have recently been in touch.

Nbs222

MK62 : No still waiting  transfers for ISA cash and  some foreign registered stocks

kencom

Anyone heard of Mendelsons solicitors From Manchester?

I’ve had a call from one of their partners offering their no win, no fee services with a 30% commission for mis sold shares during My SVS trading period, as I had their dreaded share recommendation calls/transactions on occasions.

sweeter_strudel

kencom said:

Anyone heard of Mendelsons solicitors From Manchester?

I’ve had a call from one of their partners offering their no win, no fee services with a 30% commission for mis sold shares during My SVS trading period, as I had their dreaded share recommendation calls/transactions on occasions.

Report them everywhere you conceivably can - starting with any legal professional body they may belong to, working your way past ITI and Leonard Curtis via the FCA.

Cold calling - how would anyone even know you were an SVS client?

I'm sure disgruntled SVS employees stole the customer list and sold it on simply because of the way I control who gets sight of my landline, mobiles (multiple numbers) and work (multiple numbers) to contact me. And then working out which numbers the SVS claims guys had access to....

ITI were put in the naughty step because I think they were caught by the FCA promoting a third party claims company a few months ago. Can't recall the name of the company - it wasn't Mandelsons.

Ironically I laugh when I get these calls as, courtesy of not going for every hairbrained punt, I'm sure I did OK financially out of SVS tipsters / pushers.

My2penneth

I've come to the conclusion that iWeb are not that brilliant neither! 

My wife initiated a transfer request with them from ITI - We completed the paperwork and signed it (I witnessed her sign the form).   

A while passed and we then received a letter to say that they had not received a transfer request form and could she send one in (they sent a form with all the details on and a prepaid envelope- just requiring a signature). So, we sent that off. It was definitely signed by my wife (AGAIN). The form contained all account references.

That was a couple of weeks ago. Today we had another letter saying that they did not have a signed transfer form for the transfer.

fmmajid

Still waiting for transfer...disgrace