SVS Securities - shut down?

RasputinB

Ravima said:

ah, but will LC accept/have any responsibility? 

CASS 6.3.1 of the FCA Handbook explains that a firm which arranges the registration of a safe custody investment through a third party must exercise all due skill, care and diligence in the selection and appointment of the third party and that it must conduct periodic reviews.
The firm must take into account the expertise and market reputation of the third party.
This would have applied to SVS (under special administration) and Leonard Curtis would have been responsible for the appointment of ITI Capital as custodian and for periodic reviews.

SVS Securities was still using ITI Capital as custodian at the time of the further restrictions imposed by the FCA .

I'd suggest that SVS were in breach of CASS 6.3.1 and that Leonard Curtis are responsible.
Unless clients (and we are still classed as clients even if transferred out) complain to the FCA about the conduct of SVS / Leonard Curtis they are unlikely to take action.
The FCA phone number is 0800 111 6768 or +44 207 066 1000. There is also a "chat facilty" at http://www.fca.org.uk/contact
As soon as you refer to SVS Securities the FCA employee should note that their register details are out of date. I'd suggest that this is grounds for a further complaint as Leonard Curtis are responsible for their accuracy.

JS249

RasputinB said:

This would have applied to SVS (under special administration) and Leonard Curtis would have been responsible for the appointment of ITI Capital as custodian and for periodic reviews.

The job of Leonard Curtis was not to investigate that the FCA was right or wrong to approve ITI or to review their subsequent performance = definitely not in their remit or their responsibility.

The Court was advised by the FCA that ITI were approved and that lets Leonard Curtis off the hook.

RasputinB

JS249 said:

The job of Leonard Curtis was not to investigate that the FCA was right or wrong

The Distribution Plan for client assets was proposed by Leonard Curtis. It was their responsibility to diligently assess ITI Capital (and the other candidates) and decide whether or not they had the capability to properly take on the book of SVS clients. The FCA would have confirmed that ITI Capital were a regulated firm. As I have stated the judgement as to whether or not they had the capability to take on the book of SVS clients was down to Leonard Curtis. The court gave us some protection in that we could chose not to stay with ITI Capital and reverse transfer back to SVS Securities. But this was discouraged by Leonard Curtis and assets were still bogged down in the administration mess of ITI Capital.

Sheris

RasputinB said:

JS249 said:

The job of Leonard Curtis was not to investigate that the FCA was right or wrong

The Distribution Plan for client assets was proposed by Leonard Curtis. It was their responsibility to diligently assess ITI Capital (and the other candidates) and decide whether or not they had the capability to properly take on the book of SVS clients. The FCA would have confirmed that ITI Capital were a regulated firm. As I have stated the judgement as to whether or not they had the capability to take on the book of SVS clients was down to Leonard Curtis. The court gave us some protection in that we could chose not to stay with ITI Capital and reverse transfer back to SVS Securities. But this was discouraged by Leonard Curtis and assets were still bogged down in the administration mess of ITI Capital.

Fully correct, and from the go this notice was given to Leonard Curtis, they carried on regardless to the information advising them from the ex SVS clients, never answered a question in my many emails with heads in the sand making millions. 

NorthBryan

I asked to transfer my share to another broker and I got this back from ITI capital 

Dear Mr Xxxx

I have to inform you that we can not transfer your Xxxx shares

You have several solutions what to do with it

1) To sell shares, after it we can transfer money

2) Request a certificate, at a cost of 50 GBP

3) Gift it to ITI.

when I questioned them about option 3 I got this back from ITI

Dear Mr Xxx

You can give up your shares to ITI if you if you do not need it. 

are they saying just give them the shares for nothing? 

eskbanker

NorthBryan said:

I asked to transfer my share to another broker and I got this back from ITI capital 

Dear Mr Xxxx

I have to inform you that we can not transfer your Xxxx shares

You have several solutions what to do with it

1) To sell shares, after it we can transfer money

2) Request a certificate, at a cost of 50 GBP

3) Gift it to ITI.

when I questioned them about option 3 I got this back from ITI

Dear Mr Xxx

You can give up your shares to ITI if you if you do not need it. 

are they saying just give them the shares for nothing? 

I'm struggling to think of any other interpretation of 'gift it to ITI' but am also struggling to think of a reason why anyone would choose option 3 over the others anyway.  What are the shares and what's the holding worth?  Does your new broker definitely offer them?

NorthBryan

Totally agree with your reply. Why would anyone gift them to ITI and they are just some FTSE 100 bank shares and worth around 2k.
I might just pay the £50 and get the very although how long that would take them to do that I got no idea. 

Do you think they are going to hit the wall  ITI? 

RasputinB

NorthBryan said:

I might just pay the £50

A share certificate may take some time to arrive and if lost in the post you'll have even greater problems!

I have made three recent transfers to Interactive Brokers (IBKR). Two from the UK and one from the US. They took about two weeks. You need to check but I think that IBKR no longer charge a holding or a non-activity fee so they would be a cheap option.

There are other brokers but an advantage with IBKR is that ITI use their stockbroking systems so it should be a really easy transfer. The hassle is setting up the IBKR account and initiating the transfer with them. Once done you simply advise ITI using the information from IBKR.
Check with ITI to see if they intend to charge you for the transfer as the period of free transfers may have passed.
Whatever you decide to do I'd suggest you get on with it!

meuok

Page 588
Fca notice

RasputinB

In a case involving a delayed transfer from Barclays to a new broker Ombudsman Philip Gibbons asks "When should the transfer have been completed?".
His answer is "I think it is reasonable to use four to six weeks as a reasonable normal time for transfer".

https://www.financial-ombudsman.org.uk/files/238865/DRN2145369.pdf

When the Financial Ombudsman Service eventually deal with my complaint I will suggest that ITI Capital compensate me for the delayed transfer on the basis that it should have been completed within four to six weeks.