SVS Securities - shut down?

RasputinB

I think that I understand your point but maybe worth considering that;

1) although a separate jurisdiction Guernsey does take UK regulation into account. For example "the UK's recent sanctions made against Russia in response to the war in Ukraine have automatic effect in the Bailiwick". Both jurisdictions will also need to follow International Compliance rules on money laundering etc.,
2) although different entities, ITI Trade and ITI Capital have had common Russian links, a business relationship and common ownership,
3) ITI Capital's accounts show amounts owed to, or from, ITI Trade. For example, as at 31/12/2019 ITI Trade owed ITI Capital £2.7 million,
4) action taken by one regulator, or problems they found, may have triggered the action taken by the other,
5) the wording of the Guernsey press release suggest reputational problems and if these led to the closure of ITI Capital Limited then there has been a direct impact on its customers.

Early days yet but when more detail comes into the public domain I think it will become more interesting. 

Of possible further interest to some is the fact that ITI Capital must hold a minimum of £4m in cash and that client redress payments can be paid out from that amount.

johnburman

I tend to agree with RasputinB. A subsidiary of 'our' ITI going into Admin is a point to note. Whether it is a sign as to the futures we don't know. But clearly all is not well. 

pafpcg

Whilst I share the grim satisfaction of seeing ITI moving further along the road that their performance for their clients entitles them to, I fear the consequences of administration.  Remember what happened after SVS closed:  our personal data was "monetised" - was there any SVS client who didn't receive phone calls and emails offering inducements to invest elsewhere?

But with ITI and its origins, I worry about the potential for much greater malign effects.

eskbanker

johnburman said:

A subsidiary of 'our' ITI going into Admin is a point to note.

But the point is that ITI Trade isn't a subsidiary of ITI Capital - they're both subsidiaries of ITI Group, hence the lack of direct relevance....

johnburman

My mistake.

The point is that the company is not authorised to deal on behalf of UK retail clients. 

So of itself it is irrelevant. In practice however..... 

RasputinB

pafpcg said:

Whilst I share the grim satisfaction of seeing ITI moving further along the road that their performance for their clients entitles them to, I fear the consequences of administration.  Remember what happened after SVS closed:  our personal data was "monetised" - was there any SVS client who didn't receive phone calls and emails offering inducements to invest elsewhere?

But with ITI and its origins, I worry about the potential for much greater malign effects.

Exactly. The end may be coming for ITI Capital (London) but we still need to remain vigilant.

RasputinB

johnburman said:

My mistake.

The point is that the company is not authorised to deal on behalf of UK retail clients. 

So of itself it is irrelevant. In practice however..... 

Which is why it was suggested to the FCA that they investigate the links between ITI Capital and ITI Trade. ITI Trade was touted as the first of its kind to obtain a licence from the Guernsey Financial Services Commission to operate as an online prime broker. Not authorised to deal on behalf of UK retail clients but pretty active with ITI Capital as can be seen from the company accounts.
But the reason for the end of ITI Trade could have been as simple as the resignation of a director.

My2penneth

A LONG time coming but not surprising.  

 received the notification this morning. I googled for more information.  As an aside I came across this article in the FT Advisor.

https://www.ftadviser.com/regulation/2022/02/17/fscs-pays-out-31-6mn-on-failed-wealth-manager/


Of the £31.6m paid out by the FSCS, how much was paid to LC?

jenwrendorset

Just when I thought I had heard the last of ITI Capital their latest email has just popped into my inbox. Although all our accounts were successfully (albeit slowly) transferred we still have some delisted AIM (BNN technology) shares languishing in a Quort account which I don't know what to do about. our present broker iWeb does not accept delisted AIM shares and in fact ITI Capital doesn't deal with AIM listed shares but ended up with them when they took over from SVS so they are just sitting there.  Realistically I think we've just about written them off but BNN website periodically gets updated so I was just going to leave them with ITI indefinitely but that mat has now been pulled from under my feet.  Anyone have any suggestions - our only thought is to request a paper certificate but no doubt ITI will charge through the nose for that and then I'm wondering whether that will cause even more problems??

leepeterson1973

I'm in a similar boat jenwren, I have the majority of my Calidus(asx) holding with ITI Capital (awarded via my Keras Resources shares). I wasn't able to find a platform that would take them.
I have a small holding of Calidus at Interactive Investor but for some reason they couldn't take them either.
I fear they will only offer to sell them and at best transfer the money within the ISA wrapper to one of my other ISA accounts.
Who knows what will happen to the share price during that time.
Annoyed!