SVS Securities - shut down?

englishmas

Thanks Masonic for your response, I did try to involve my PM but did get any response from her. As you said what can do is only wait .

johnburman

Insolvency Rules  - -Rule 7.108.—(1) All fees, costs, charges and other expenses incurred in the course of the winding up are to be treated as expenses of the winding up.

You are right, but there will be enough in the company to pay the fees of the winding up process I am sure, even if there not for other creditors 

johnburman

Re FSCS. Can you include a loss of interest charge to the award for their delay?

it seems to me that the delay is caused by the FSCS and they should pay the same.

It's a shame that you can't force them to speed things up by applying to the court 
Or can you? 

englishmas

Hi Johnburman

The FCA ombudsman decision was  that SVS should  compensation with interest, I do not know if the FSCS will fallow that.

RasputinB

2 more additions to Ombudsman decisions -

DRN-3652059 £500 D&I, ITI initially offered £75
DRN-3619278 £500 D&I

Note that both of these decisions included this wording - "If ITI Capital Limited doesn’t pay this sum to [] within one month of ITI Capital Limited being notified of []’s acceptance of this decision, then ITI Capital Limited should pay [] simple interest on the sum at the rate of 8% per year from the date of my decision until the date ITI Capital Limited pays [] the sum."

englishmas

in my case the compensation awarded by FCA against SVS was much more than the 85k, I understand that FSCS compensation has a limit of 85k, if I ever get any compensation from FSCS it will be 85k minus liquidator cost so any interest payable will come  meaningless.

masonic

johnburman said:

Insolvency Rules  - -Rule 7.108.—(1) All fees, costs, charges and other expenses incurred in the course of the winding up are to be treated as expenses of the winding up.

You are right, but there will be enough in the company to pay the fees of the winding up process I am sure, even if there not for other creditors 

Based on the latest progress report, total expenses of the administration of SVS are currently estimated at £31m. The vast majority of that was borne by investors and paid through FSCS compensation. In the case of ITI, the FCA is trying to prevent that from happening again by forcing clients away from ITI. This has the side-effect of cutting off the majority of the company's earnings, so it is effectively going to have to fund itself through consumption of its assets. It looks as though there are still a lot of stranded illiquid client assets, probably numerous financial instruments each of low value, and much work to be done in winding up the company, which would trigger an insolvency under the Special Administration Regime. There's no doubt that with most clients and assets gone, the total expenses would be lower, but even if they were an order of magnitude lower, expenses could greatly exceed realisable assets.

johnburman

Englishmas, the MAX you will get from the FSCS is £85k.  But as long as ITI ringfence you assets, and there is no suggestion of them doing otherwise, your losses are not going to exceed the £85k.  So hell yes claim interest from them

The more I think of it the more ITI are really corporate Brokers.  they put their toe in the water with the EX-SVS retail clients, could not service them and have pulled out/made to pull out of that market.  but they are still a proper broker Regulated by the FCA.  That is worth a lot of money; think of the costs in getting authorised afresh.  Do they have serious backers?  If they do all this liquidation talk is misplaced.   

masonic

johnburman said:

Englishmas, the MAX you will get from the FSCS is £85k.  But as long as ITI ringfence you assets, and there is no suggestion of them doing otherwise, your losses are not going to exceed the £85k.  So hell yes claim interest from them

The compensation awarded to englishmas exceeded the remaining value of his assets +£85k, so the maximum he can receive is £85k minus his share of administration costs. See https://forums.moneysavingexpert.com/discussion/comment/76173150#Comment_76173150

johnburman said:

The more I think of it the more ITI are really corporate Brokers.  they put their toe in the water with the EX-SVS retail clients, could not service them and have pulled out/made to pull out of that market.  but they are still a proper broker Regulated by the FCA.  That is worth a lot of money; think of the costs in getting authorised afresh.  Do they have serious backers?  If they do all this liquidation talk is misplaced.   

They must have had serious backers because they've been burning through millions of investor cash each year. They posted 7 figure losses as ITI Capital and Walbrook Capital Markets going back to 2014. As FXCM Securities they were profitable (made £9.3m profit in 2013). However, this was based on billions traded in FX and CFDs. They and their customers got badly burned in early 2015 and ended up with negative balances totalling -$276m. This seems to have got them in trouble with the FCA, wiped out a large part of their customer base, and caused them to have to take on a $300m loan. Under FCA restriction not to trade in their own right, the business fundamentally changed to heavily loss making and was never the same again. After this new set-back around the loss of their retail client base and huge costs associated with onboarding offloading and compensating retail clients, any prospective investors would need to be extremely forgiving not to throw in the towel.

englishmas

Thanks Masonic and Johnburman for your input
When I summited my claim to FSCS, I did  the calculation of my loses  this way, total investment made with SVS minus the value of the remaining holding and  cash ( at the day  of FCA ombudsman decision/valuation sent by ITI) that was more than 85K.
Since then I have taken out the cash from my ITI account , transferred my account to another broker and sold my all holdings.therefore  I  have managed to get some money back but the loses remains, I know FSCS total compensation is 85k .so I am hoping that FSCS will give me 85k minus fees. This is still an hope!!!!