SVS Securities - shut down?

johnburman

a happy Xmas and other festive greetings to the regulars on this thread 

of course the system is designed for firms to deal with complaints and pay up when found wanting 

with ITI they seem to have given up on retail clients 

so 

Complain to them 
it will be ignored 
complain to the FOS 
at the same time tell the FCA 
make several claims on the FOS 
get the FOS to award comp. it is going up but it still is low 
iti may pay it... they did for me... or not
if not claim on the FSCS 
and again tell the FCA 

Simples... but bloody time consuming 

But you will get comp 

sometime I'm sure Panorama or the Insight team will write up this story but I'm not holding my breath 

VERY few svs clients will have complained. thus justifying iti taking the stance they have. What is mystifying is that the FCA allows them to do do

Josl

FSCS won’t allow you to file a claim if ITI refuses to payout your FOS award. Simply because ITI is registered and regulated and hasn’t collapsed that will apply even if ITI exit the UK markets.

FCA reply was sympathetic as they agreed to pass my concerns to an internal team overseeing ITI mess. From the reply it seems FCA is aware of ITI refusal to pay FOS award

i agree with SamAus, moving investments out of UK is the right decision. Regulator is criminally negligent and legal process is not on our side. Crooked businesses setting up genuine business can walk away with all your investments into the sunset. There’s nothing anyone can do about it. There’s no protection and nor there’s a will to set things right. Morons running FOS are a prime example.

johnburman

FSCS won’t allow you to file a claim if ITI refuses to payout your FOS award. Simply because ITI is registered and regulated and hasn’t collapsed that will apply even if ITI exit the UK markets.

Yes, you are right....but the FSCS will pay if the firm has "failed" .  So does that mean that you must wind them up for the monies owing to you?  And will the FSCS pay the costs of the winding up? (but you do get those costs paid out by the failed firm)

Josl

@johnburman yes only if it fails but ITI seems to be heading towards business ceased trading scenario in which case I think FSCS protections do not apply. Court process is on a snails pace with no guarantee if one can recover the windup cost at all with ITI. I would not take the risk personally. You are right in case of a failed firm FSCS should cover that cost.

masonic

FCA may step in and take further enforcement action (including putting ITI in administration) if it is unable to meet creditor claims. However, much dragging of feet can be expected. ITI is already under capital restrictions to ensure it has the funds to pay anticipated compensation. It is pretty sad that consumers have reached the point where they either bring a legal claim (for which the cheapest and simplest option is to apply for a court order enforcing the FOS decision) or are forced to wait for the situation to worsen enough to push the FCA into action.

johnburman

Agree with Masonic. but applying to the County Court semms the best way to obtain payment. And when it occurs it seems unlikely that ITI would simply ignore the FOS award 

Anyway one would hope court action would prompt the FCA into taking independent action against ITI. 

RasputinB

According to my FOS contact ITI Capital are processing compensation payments. I guess it depends on how much pressure is put on them. I've been assured that my payment is on its way.

johnburman

all previous comments seem sensible

also can issue a notice to wind up the company. this is free and you fill it in and send it to ITI giving them three weeks to pay or else you can issue a winding up petition 

the fact that we are talking about this is a disgrace to the FS industry in the UK and to its regulators. 

RasputinB

johnburman said:

issue a notice to wind up the company.

"You can apply to the court to close or ‘wind up’ a company if it cannot pay its debts. This is also known as compulsory liquidation.

To wind up a company you must:

be owed £750 or more

be able to prove that the company cannot pay you"
Wind up a company that owes you money: Overview - GOV.UK (www.gov.uk)
I think that as things stand it would be impossible to prove that ITI cannot pay so I can't see how this idea would fly?

masonic

RasputinB said:

johnburman said:

issue a notice to wind up the company.

"You can apply to the court to close or ‘wind up’ a company if it cannot pay its debts. This is also known as compulsory liquidation.

To wind up a company you must:

be owed £750 or more

be able to prove that the company cannot pay you"
Wind up a company that owes you money: Overview - GOV.UK (www.gov.uk)
I think that as things stand it would be impossible to prove that ITI cannot pay so I can't see how this idea would fly?

The evidence that a company cannot pay you is that you have served them with a statutory demand for payment and they have not responded to it (by either paying or reaching an agreement to pay) within 21 days. I think johnburman was referring to making the initial statutory demand in the first instance, which costs nothing and may prompt them to pay. If not. you can then take a view whether or not to follow through with a winding up petition (or other legal avenues to enforce the debt).