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SVS Securities - shut down?

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Comments

  • Reaper
    Reaper Posts: 7,356 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    It sounds like Winterflood are trying it on. I assume you were trading through SVS as execution only using a nominee account (rather than buying actual shares and getting share certificates).

    If so my understanding is you have no relationship with Winterflood. Indeed I am unclear how Winterflood even got hold of your details, they have no right to them. You don't own the shares, you are only the beneficial owner.

    To quote Investopedia
    The broker can buy and sell on your behalf, but creditors can't get to your money if the brokerage goes belly up or your broker tries to swindle you.
  • samuzza
    samuzza Posts: 14 Forumite
    Got a letter from Winterflood Securities today about an unsettled trade with SVS.

    The gist of the letter is I need to pay Winterflood for a trade that happened on the 1 August. If I don't, they will 'close out' the trade and claim any loss from me.

    If I settle with Winterflood directly, that means I will have paid for the shares twice. In that case, how would I go about reclaiming the money SVS took from me?

    Also, to proceed they want details of my broker. I don't have another broker. And Since I live abroad, it's not easy for me to get another broker in the UK.

    Any one else in a similar situation with an unsettled trade? Any advice?

    I will contact Winterflood and LC today, but any thoughts and suggestions appreciated.

    Got a quick email reply from SVS/LC confirming the legitimacy of the letter. They advised me to contact Winterflood.

    So I phoned Winterflood and spoke to a friendly, helpful guy. He said the wording of the letter was determined by LSE and that the bit about 'close out' the trade and 'claiming any loss' is unlikely to happen.

    He said there are two options: 1) settle the trade as laid out in the letter; 2) wait until LC have transferred my account and then settle the trade using the new broker (which I guess will be around April 2020). I'll be going for the second option.

    I think he said/suggested the cash to settle the trade is still with SVS, and ring-fenced, even though it's not showing in my cash balance.

    Also, he asked me to send him an email so they have a written record.

    In the end, I think the letter sounded a bit more intimidating than the situation actually is.
  • samuzza
    samuzza Posts: 14 Forumite
    edited 31 October 2019 at 3:27PM
    Indeed I am unclear how Winterflood even got hold of your details, they have no right to them.

    The letter I received states that the LSE collected the details of all unsettled trades from LC/SVS and then passed the relevant information to Winterflood.
  • manted wrote: »
    https://www.sharesoc.org/blog/insolvency-and-administration/another-update-on-the-svs-special-administration/
    Some more details, but your pictures and notes would be useful Eastneuk ..


    First sentence from the above states:


    "A very good client and creditors meeting today with plenty of reassurance from LC and the FSCS. Key points are that they have narrowed the choice of brokers down to 3 to do a single transfer to and will confirm this by the 31/10."


    Anyone heard about the new broker yet or have LC just let the date slip by?
  • NZPK
    NZPK Posts: 15 Forumite
    10 Posts First Anniversary
    Not a peep on any of the usual comms methods.

    By the way, the reworked LC website is very hard to navigate and find things on. The old one was better. Who knows what's on there but inaccessible.
  • Hi All - I hope someone can answer my question. I am following this process but I don't really know I understand everything that is going on. I have around 20K in my account with SVS and I received a statement from Leonard Curtis tconfirming that. These are not invested in any stocks so it's just money sitting in there that i was looking to invest. I believe this classifies as "Client Money" as opposed to "Client Assets" - is that correct?

    Also, is there a possibility that I will lose this money? I read that FSCS makes up for any shortfall up to 85K. Does that mean that my money is safe?

    It's just so frustrating that the money is just sitting there doing nothing - and essentially losing value if you consider inflation.

    Appreciate any answers please.

    Thanks.
  • In theory it should be safe. I am not sure if 'Admin charges' are allowed to be deducted from it or not; hopefully someone else can clarify?
  • manted
    manted Posts: 126 Forumite
    Fifth Anniversary 100 Posts Photogenic Name Dropper
    https://www.leonardcurtis.co.uk/wp-content/uploads/2019/10/Client-and-Creditor-Committee-Information-30.10.2019.pdf
    I only found the above link on the new LC website.
    I do agree its very hard to navigate. Dont understand why they would bother wasting our money on making the website harder to navigate .
  • Reaper
    Reaper Posts: 7,356 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    pixaar123 wrote: »
    Also, is there a possibility that I will lose this money? I read that FSCS makes up for any shortfall up to 85K. Does that mean that my money is safe?
    Your money is safe from all creditors except the administrators fees. In theory the administrators can spread their charges over all the customer accounts, then the FSCS would need to refund each eligible customer.

    However that would involve a lot of admin so they are looking alternatives. It is almost certain the FSCS will end up simply paying the administrators directly.
  • My2penneth
    My2penneth Posts: 807 Forumite
    Fourth Anniversary 500 Posts Name Dropper
    edited 1 November 2019 at 6:44PM
    Pixaar

    You will not lose the £20k.

    When you will get it back might take some time (Q1 2020) but as this was below the 85k limit then you will def get it back.


    See Reapers comments above which is what I expect to happen - basically, it's a case of sitting back and waiting. You should get the full £20k back (later rather than sooner)


    p.s - the new website is not very user friendly - that's where the ££ is going.

    pps. Anyone read the compo letter issued today for FIRMS (not retail clients like us) - note the opening gambit of 10% - Just like PWC and Beaufort !!
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