SVS Securities - shut down?

snipkin

An article appeared today on FT Adviser website: "Clients of SVS Securities to reclaim cost of transfer". I cannot post the actual weblink.

Jools2001

Just found the link,: ftadviser.com/your-industry/2019/10/08/clients-of-svs-securities-to-reclaim-cost-of-transfer/

I cant really afford them to sell my shares to pay any costs,
and why cant we just pay them first via credit card etc
and then claim the cost back, that way im not going to lose out on currently rising shares,
that have been losing money , upto now, for a few years?

Jools

Twonko

I would also prefer to pay cash and reclaim the money separately. I do not wish to sell any shares currently held in my SVS account. The dividend cash in my ISA also needs to stay in the ISA. I would also like to be able to transfer everything lock stock to Hargreaves, where I already have accounts into which the SVS assets can be transferred. I guess I had better let Leonard Curtis know all this. I wish they would get a bloody move on. None of this is our fault and it is a right inconvenience.

manorhouse

I would assume you would be invited to pay any money to cover costs before they would sell your shares to cover any fees.
like beaufort were there was much more sculdugery the fccs will cover there cost.
why would they treat us less then beaufort ?

My2penneth

In the link posted above , they say

"In proposals which went live on Companies House today (October 9) the administrators confirmed the "quickest and most cost effective" way to return assets and money to SVS clients would be to transfer business to one or more of the interest regulated brokers."

So, it is looking likely that the shares will be transferred to another platform...which will not be as onerous as LC are making out! This will most likely go the same way as Beaufort and the FCA will step in and cover the costs directly... we will not have to stump up any cash nor lose shares/sell shares to pay for the costs.

pafpcg

The relevant key paragraphs in the article are:

Leonard Curtis said: "The administrators are currently exploring, together with the FSCS, the most appropriate basis and methodology for allocating the time costs incurred returning custody assets and client money.

"At present, the administrators propose that those costs will be levied as a percentage of client money and as a fixed, capped amount for each transfer of custody assets. This basis will be subject to agreement by the creditors' committee.

"The administrators are working closely with the FSCS to streamline the process for clients' claims for shortfalls arising on their custody assets and client money through cost levies."

The only issue that was new to me was the second paragraph above. I see no mention of how LC propose to take their levy on transferred custody assets - selling part of each portfolio has to be a possibility but nowhere does LC suggest this, as far I'm aware.

I wonder how soon someone will post a report on today's meeting?

manted

any word from someone who was able to attend ?
I was in London for some work but due to Jubilee line closure was unable to make it ..

johnburman

I made it and it's not that simple

They have not yet agreed the basis of costs with the FSCS

The FSCS will be paying LC their costs directly is the aim

There will be a formula. If as a result your LOSSES are over £85k and you are an individual or small company or any sum and you are a big company or are a special category (seemingly a special type of FX client somebody better than me can explain) you will bear that loss

The formula has yet to be agreed

PS the aim is to transfer All clients to a new FSA approved broker. Several are interested.

But you won't get access until April 2020

Good news is that client monies and shares for XO clients are there and reconsile.

fmmajid

April 2020?
!!!!!!?!

Leonard Curtis are an absolute disgrace and milking every single minute here.
They are charging £540 per hour!
£540....

Deliberately taking their time and will most likely end up charging us thousands of pounds each - in some cases this will be more than the shares are worth.

Ridiculous and a total scam.

My2penneth

Their charging rates per hour are
Director £525
Senior Mgr £445
Manager 1 £395
Manager 2 £345
Administrator 1 £280
Administrator 2 £250
Administrator 3 £230
Administrator 4 £165

These rates are specified in their proposal letter 25 September.

I suggest that the FCA should ask for a work breakdown structure and a plan for the work and not to give them a blank cheque. I would want to know how much each of the above "rates" are going to be used.