SVS Securities - shut down?

Sheris

My2penneth said:

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?

Shocking sums was paid to LC, just shows how poor the FCA and LC are in there actions, if the FCA where on the ball one year previous with SVS, as they where fully aware, but they turned a blind eye.
Then allow ITI Capital with LC giving the okay, unbelievable.      

RasputinB

jenwrendorset said:

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??

1. The FCA has advised that ITI must return all retail client custody assets.
2. You should instruct ITI to return your delisted AIM shares in certified form.
3. If they do not give you a timely response to your instructions and / or try to charge too much (I'd have thought there would be no charge as they are shutting down) then escalate to the FOS.
4. Remember that this is ITI's problem, not yours, and if they don't respond properly it should become the FOS's problem and, thanks to the FCA, there should be £4m available to resolve such problems.
5. Get on with it so that you can instruct ITI to delete your personal data as soon as possible - see https://forums.moneysavingexpert.com/discussion/comment/79347198/#Comment_79347198

jenwrendorset

RasputinB said:

jenwrendorset said:

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??

1. The FCA has advised that ITI must return all retail client custody assets.
2. You should instruct ITI to return your delisted AIM shares in certified form.
3. If they do not give you a timely response to your instructions and / or try to charge too much (I'd have thought there would be no charge as they are shutting down) then escalate to the FOS.
4. Remember that this is ITI's problem, not yours, and if they don't respond properly it should become the FOS's problem and, thanks to the FCA, there should be £4m available to resolve such problems.
5. Get on with it so that you can instruct ITI to delete your personal data as soon as possible - see https://forums.moneysavingexpert.com/discussion/comment/79347198/#Comment_79347198

Thank you RasputinB, that is great advice, I was intending to write to ITI but I'll now include this viewpoint as well and will copy in the FCA for good measure.  Today's project sorted.  Again many thanks.

tonyb42

Just when I thought my two ISAs were protected from the SVS shutdown in 2019, now I discover ITI are closing down their retail business and my ISAs are on the move once again! My gut instinct was to move to another broker with the never-ending ITI delays and failures transferring the SVS accounts over. This would have been fine but inconvenient, however my SVS account was setup while I was a UK resident. Since late 2015 I have been a UK passport holder living as a permanent NZ resident and I realised when ITI took over, I had no choice but to reluctantly stick with them as no UK broker takes on new accounts from non UK residents. So now I have the problem that I have to sell off shares in the ISA as I cannot transfer them anywhere? So with the knowledge that two ISAs are going to disappear because of SVS and ITI company shutdowns - that's two future decades of approx 2k annual dividends lost. What claim can I make for loss of future dividends or otherwise through FBCS or FOS as I am forced to sell?

RasputinB

tonyb42 said:

Just when I thought my two ISAs were protected from the SVS shutdown in 2019, now I discover ITI are closing down their retail business and my ISAs are on the move once again! My gut instinct was to move to another broker with the never-ending ITI delays and failures transferring the SVS accounts over. This would have been fine but inconvenient, however my SVS account was setup while I was a UK resident. Since late 2015 I have been a UK passport holder living as a permanent NZ resident and I realised when ITI took over, I had no choice but to reluctantly stick with them as no UK broker takes on new accounts from non UK residents. So now I have the problem that I have to sell off shares in the ISA as I cannot transfer them anywhere? So with the knowledge that two ISAs are going to disappear because of SVS and ITI company shutdowns - that's two future decades of approx 2k annual dividends lost. What claim can I make for loss of future dividends or otherwise through FBCS or FOS as I am forced to sell?

I expect that some of the SIPP trustees on the list provided by ITI will take on non UK residents. But try hard to find a company not on the list and make sure that you do enough due diligence. Relying on FCA regulation clearly isn’t sufficient. Maybe future problems can be avoided if you find a "mainstream and stable provider". See https://forums.moneysavingexpert.com/discussion/comment/76835848/#Comment_76835848 

There will be many non UK resident SIPP holders in the same situation so it may be helpful to them if you post your findings here. Good luck.

eskbanker

RasputinB said:

tonyb42 said:

Just when I thought my two ISAs were protected from the SVS shutdown in 2019, now I discover ITI are closing down their retail business and my ISAs are on the move once again! My gut instinct was to move to another broker with the never-ending ITI delays and failures transferring the SVS accounts over. This would have been fine but inconvenient, however my SVS account was setup while I was a UK resident. Since late 2015 I have been a UK passport holder living as a permanent NZ resident and I realised when ITI took over, I had no choice but to reluctantly stick with them as no UK broker takes on new accounts from non UK residents. So now I have the problem that I have to sell off shares in the ISA as I cannot transfer them anywhere? So with the knowledge that two ISAs are going to disappear because of SVS and ITI company shutdowns - that's two future decades of approx 2k annual dividends lost. What claim can I make for loss of future dividends or otherwise through FBCS or FOS as I am forced to sell?

I expect that some of the SIPP trustees on the list provided by ITI will take on non UK residents. But try hard to find a company not on the list and make sure that you do enough due diligence. Relying on FCA regulation clearly isn’t sufficient. Maybe future problems can be avoided if you find a "mainstream and stable provider". See https://forums.moneysavingexpert.com/discussion/comment/76835848/#Comment_76835848 

There will be many non UK resident SIPP holders in the same situation so it may be helpful to them if you post your findings here. Good luck.

@tonyb42 is looking for a home for an ISA rather than a SIPP, and those resident outside the UK definitely can't open an ISA, unless qualifying under the exemption at https://www.gov.uk/individual-savings-accounts:

You must also be either:

• resident in the UK
• a Crown servant (for example diplomatic or overseas civil service) or their spouse or civil partner if you do not live in the UK

RasputinB

eskbanker said:
@tonyb42 is looking for a home for an ISA rather than a SIPP...
Oops! My mistake.
The link you provided goes on to say "You can transfer an ISA to another provider even if you are not resident in the UK".
If he can't find a provider then I guess that the assets simply need to come out of the ISA wrapper rather than be sold. As that isn't the fault of ITI it is doubtful that a claim could be made for the resultant inconvenience and / or tax problems?

eskbanker

RasputinB said:

The link you provided goes on to say "You can transfer an ISA to another provider even if you are not resident in the UK".

Yes, but if you can't open one then I believe that's moot, i.e. that transfer option only applies for those who already have one with another provider, opened when a UK resident.

RasputinB said:

If he can't find a provider then I guess that the assets simply need to come out of the ISA wrapper rather than be sold. 

I'm not sure that it's viable to transfer stocks from inside an ISA to outside without selling - it certainly isn't in the other direction.

RasputinB said:

As that isn't the fault of ITI it is doubtful that a claim could be made for the resultant inconvenience and / or tax problems?

Well, the root cause of the situation is ITI's fault, either because of their 'choice' to exit the UK retail market or because of their failure to comply with FCA regulations, but yes, the issue for non-UK ISA holders is an unintended consequence.  In terms of a claim, the only route would be to take this up with whoever made an irrevocable guarantee that emigrants could benefit indefinitely from UK tax shelters after leaving the country....

tonyb42

@eskbanker Thanks for this. So in theory whilst a UK resident, if I had setup ISA accounts in different tax years with more than one UK broker, SVS and one other, then I could have transferred the ISAs held with SVS/ITI to the 'one other' broker. The 'one other' broker may have taken issue with my current non UK address no doubt so I'd have issues with standard AML/compliance checks

The rule may change on non UK residents keeping their ISAs but I think its treated like a pension vehicle and no doubt too much overhead to deal with as British Citizens frequently move out and then move back to the UK again.

I noticed early on with dealings with ITI that they have close links with Russian finance and no doubt Ukraine invasion sanctions are no coincidence to this recent action by ITI and then throw in compliance issues and SVS account holder claims to boot. FCA /Leonard Curtis had 11 brokers shortlisted for the SVS transition and yet they chose one clearly not fit for purpose to integrate SVS accounts.

I can't complain too much with this whole SVS and ITI debacle as I am/was a Lendy investor. That painful episode is still dragging on. The two things that stand out in both cases is yet more evidence of incompetence by the FCA and the objective of administrators to conduct their business ensuring their high costs are covered as a first priority, while taking decisions that put investor needs at the bottom of the pile.

eskbanker

tonyb42 said:

@eskbanker Thanks for this. So in theory whilst a UK resident, if I had setup ISA accounts in different tax years with more than one UK broker, SVS and one other, then I could have transferred the ISAs held with SVS/ITI to the 'one other' broker. The 'one other' broker may have taken issue with my current non UK address no doubt so I'd have issues with standard AML/compliance checks

That's my understanding, yes, that those with multiple ISAs can continue to transfer between them once no longer UK resident, but I don't know how many ISA providers are happy to retain non-UK customers versus those who choose not to.

tonyb42 said:

The rule may change on non UK residents keeping their ISAs but I think its treated like a pension vehicle and no doubt too much overhead to deal with as British Citizens frequently move out and then move back to the UK again.

There are some similarities with pensions but I'm not sure that there are any plans to change the non-resident treatment of ISAs or that there have been any significant changes in emigrants returning - ultimately it doesn't really make any difference to your situation here and now though.  Out of interest, is your ISA income taxable in New Zealand?

tonyb42 said:

I noticed early on with dealings with ITI that they have close links with Russian finance and no doubt Ukraine invasion sanctions are no coincidence to this recent action by ITI and then throw in compliance issues and SVS account holder claims to boot.

My understanding from earlier in the thread is that the FCA had already warned ITI about its performance in 2020 and restricted them from taking on new clients, and that the FCA had effectively pulled the plug on the company last month, even though ITI have defiantly tried to dress it up as their decision ('no, we dumped them').  No idea if the Ukraine situation contributed in any way though.

tonyb42 said:

FCA /Leonard Curtis had 11 brokers shortlisted for the SVS transition and yet they chose one clearly not fit for purpose to integrate SVS accounts.

You're far from alone in feeling that way but, without going back and checking, didn't most of those eleven withdraw from consideration, leaving few residual choices for FCA/LC?