SVS Securities - shut down?

eskbanker

johnburman said:

And I agree that DISP 1.3.6 is still caveated with all sorts of ifs and buts ("consider whether it is fair and reasonable for the firm to undertake proactively a redress or remediation exercise, which may include contacting customers who have not complained") rather there being an absolute obligation to act.  

But is that ITI doing the "considering", the FCA, or the reasonable man?

Not sure if that's a rhetorical question, but it's clearly the firm that does the considering in the wording of the clause:

Where a firm identifies (from its complaints or otherwise) recurring or systemic problems in its provision of, or failure to provide, a financial service or claims management service, it should (in accordance with Principle 6 (Customers' interests) and to the extent that it applies) consider whether it ought to act with regard to the position of customers who may have suffered detriment from, or been potentially disadvantaged by, such problems but who have not complained and, if so, take appropriate and proportionate measures to ensure that those customers are given appropriate redress or a proper opportunity to obtain it. In particular, the firm should:

1. ascertain the scope and severity of the consumer detriment that might have arisen; and

2. consider whether it is fair and reasonable for the firm to undertake proactively a redress or remediation exercise, which may include contacting customers who have not complained.

In other words, if the firm considers the matter and decides that proactive contact wouldn't be fair and reasonable (or perhaps appropriate and proportionate), then, as long as their rationale for that decision is seen as reasonable by the FCA then that would presumably be the end of the matter.

Perhaps worth noting that ITI were asserting that they'd unsuccessfully been trying to contact many customers during some victim-blaming last year so they'd no doubt be pushing their own agenda in any such dialogue:

The broker added that it has completed over 2,200 transfers to clients’ own brokers, with only a ‘handful of unresponsive clients left for verification’.

However, it also said that more than 4,000 clients have yet to respond despite repeated attempts to contact them.

My2penneth

Just heard from the FOS that ITI Crapital have agreed compo (£300) for my wife ...took a while ( October 2020 till now).

They agreed and paid me £300 compo a while ago ( I would have reported it here). Both complaints submitted same day. 

Maybe ITI have a ruck of complaints to deal with..colour me surprised.

johnburman

Well done

£300 each looks like it is the going rate

My2penneth

Confirmation that the £300 compo has been paid into our bank account. A lot of hassle for such little compensation. I still hold shares in just 1 company in the Qort account ...how the heck to sell them so I can shake Crapital off my shoes? The shares are in my wife's name so I (probably) can't do this over the phone.

Emillion1

So now ITI have been told to close retail accounts, all the S**t that clients were put through with the transfer! LC & FCA should hang their heads in shame.

eskbanker

Emillion1 said:

So now ITI have been told to close retail accounts

Seems odd that this hasn't been reported on this thread already, given that the FCA register records this restriction being effective from 1 June 2022:

https://register.fca.org.uk/s/firm?id=001b000000MfGkrAAF#what-can-this-firm-do-restrictions

Part 1 of 3

Requirements

Cease regulated activities relating to all retail client services

1. ITI Capital Limited must cease to act for any retail clients, whether new, existing or proposed clients, as set out in paragraphs 2-7 below.

2. ITI Capital Limited must not provide services to any new retail client with immediate effect.

3. ITI Capital Limited must appoint an independent third party (the identity of which must be agreed by the FCA prior to such appointment), by 15 June 2022 to oversee by no later than 30 September 2022 (or a date agreed with the independent third party to the satisfaction of the FCA), the orderly closure of ITI Capital Limited’s retail client services and the return (or transfer if appropriate to another provider’s custodian) of all retail client monies and custody assets.

4. From 15 July 2022, ITI Capital Limited must not permit any existing retail clients to open new positions and ITI Capital Limited must not accept any new client money or custody assets from or on the account of existing retail clients.

5. Paragraph 4 does not apply to the acceptance of client money or custody assets from or on the account of existing retail clients as a result of, or in relation to, the following:

a) Existing retail clients trading existing client money and/or custody assets;

b) Receipt of dividends of coupons;

c) Rights issues;

d) Corporate actions including maturing bonds;

e) Settlement of trades instructed but not yet settled as at the date of the Requirements; and

f) Margin calls and movements associated with open trades and positions.

6. By 31 August 2022, ITI Capital Limited must complete all reasonable steps to close all open positions of retail clients held by it, whether on its own account or on account of its clients, and require any monies held by third parties in connection with ITI Capital Limited’s trading activities, to be returned to ITI Capital Limited.

7. ITI Capital Limited must complete the closure of all retail client services by 30 September 2022 (or a date agreed with the independent third party to the satisfaction of the FCA).

Emillion1

Agreed, I had to chuckle when I saw the "ITI Capital Limited have decided to exit the retail client business" how misleading. Looking at the FCA announcements I would say ITI had very little say on the matter!

_____________________
Dear ITI Client, 

We wrote to you in July 2021 informing you about remedial work that needed to be completed to strengthen our systems and controls.  Although this has now largely been completed, ITI Capital Limited have decided to exit the retail client business in the UK. 

Please see the attached FAQ's to help you with any other questions you might have.  

Key Dates: 

15th July 2022; Clients will not be able to open any new positions but can close positions.   

31st  August 2022; All client positions must be closed.  

30th September 2022; All Retail client accounts will be closed at ITI Capital Limited.   

Our dedicated account management and dealing team will be on hand to answer any questions you might have but we do ask you to have a look at these FAQ's which will also be available on our website.  

Kind Regards, 

ITI Capital

eskbanker

Out of curiosity, are you still with them or was that email sent to all who were transferred from SVS, including those who've long since moved on to more competent providers?

Nbs222

I didn't get that email , all my SVS stocks has long been transferred.

My guess is  , It only was sent to retail clients whose stocks are still with ITI.

Emillion1

eskbanker said:

Out of curiosity, are you still with them or was that email sent to all who were transferred from SVS, including those who've long since moved on to more competent providers?

I had a minimal holding with them, less than the cost of a stamp! I closed my SVS Accounts in 2013 but for some reason the account wasn't closed.   As for the email, I had a phone call from them and asked them to email me a copy of the letter. My guess is that they are sending it peicemeil