SVS Securities - shut down?

johnburman

The ITI news has made my day. Well done FCA.... but approx two years too late!

It's the appointment of the independent third party to supervise the closure that caught my eye. Why this? And why now from the FCA? 

RasputinB

From the website of ITI Trade - "Matthew Wright and Andrew Duncan were appointed as Joint Administration Managers (the “Joint Administration Managers”) of ITI Trade Limited on 18 July 2022 by an order of the Royal Court of Guernsey (the “Administration Management Order”). As a result of the Administration Management Order, the business, property and affairs of ITI Trade Limited are being managed by the Joint Administration Managers. Customers of ITI Trade Limited may contact the Joint Administration Managers by emailing ititrade@leonardcurtis.gg"

Emillion1

RasputinB said:

From the website of ITI Trade - "Matthew Wright and Andrew Duncan were appointed as Joint Administration Managers (the “Joint Administration Managers”) of ITI Trade Limited on 18 July 2022 by an order of the Royal Court of Guernsey (the “Administration Management Order”). As a result of the Administration Management Order, the business, property and affairs of ITI Trade Limited are being managed by the Joint Administration Managers. Customers of ITI Trade Limited may contact the Joint Administration Managers by emailing ititrade@leonardcurtis.gg"

Unbelievable, the gift that keeps on giving!

johnburman

But who are ITI TRADE LIMITED? I've only dealt with the FCA UK regulated company ITI CAPITAL LIMITED. They have been restricted by the FCA. Too little and too late IMO. ALL retail clients wiil have to seek new brokers and claim compensation from the FOS. 

eskbanker

johnburman said:

But who are ITI TRADE LIMITED? I've only dealt with the FCA UK regulated company ITI CAPITAL LIMITED. They have been restricted by the FCA. Too little and too late IMO. ALL retail clients wiil have to seek new brokers and claim compensation from the FOS. 

As suggested in the quote, they're a Guernsey subsidiary of the same group, not directly related to ITI Capital Limited or regulated by the FCA - as I recall they've been discussed on this thread before but they're essentially irrelevant for those who came over from SVS to the UK ITI entity, even though the collapse of a separate part of the ITI empire may be of passing background interest....

RasputinB

eskbanker said:
 the collapse of a separate part of the ITI empire may be of passing background interest

The Guernsey Financial Services Commission felt it necessary to place ITI Trade into administration in order to protect the reputation of the Bailiwick as a financial centre and the interests of investors. "The application was not contested by the Company, it being accepted by them that it was desirable that such an order be made". See https://www.gfsc.gg/news/iti-trade-limited

eskbanker

RasputinB said:

eskbanker said:
 the collapse of a separate part of the ITI empire may be of passing background interest

The Guernsey Financial Services Commission felt it necessary to place ITI Trade into administration in order to protect the reputation of the Bailiwick as a financial centre and the interests of investors. "The application was not contested by the Company, it being accepted by them that it was desirable that such an order be made". See https://www.gfsc.gg/news/iti-trade-limited

Yes, but my point was that this doesn't have any direct impact on ITI Capital Limited customers, in that it's a separate entity operating under a different jurisdiction in another country.

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.