SVS Securities - shut down?

masonic

johnburman wrote: »

FSCS compensation depends on their Rules. They are here https://www.handbook.fca.org.uk/handbook/COMP.pdf

Bound to say for the loss of interest on my dividends not-invested is so small as to be not worth the trhead discussion, but we are not looking at ££ from LC who are agent for SVS, who are insolvent. the only ££ one woudl get is from the FSCS.

But one still has suffered a loss. After the insolvency of SVS...but for the life of me I can not find out why tha tshould prevent compensation from them

As you know, LC has immunity to such claims provided they act within the insolvency rules, and based on the rules you linked, the FSCS has no power to award compensation in respect of consequential losses such as interest that might have been earned on your cash balance elsewhere, or losses you could have avoided if you were allowed to sell your investments. So there really are no ££ one can get, unless you can establish wrongdoing by LC, FSCS, FCA or Goverrment and pursue a complaint against one of them.

johnburman

YOU SAY the FSCS has no power to award compensation in respect of consequential losses such as interest that might have been earned on your cash balance elsewhere

where in the Rules does it say that? AND surely they - SVS Estate [LC agents for SVS] - were wrong to keep ££ in a non-interest earning account?

it is a loss you have suffered and why should not FSCS pay?

masonic

johnburman wrote: »

where in the Rules does it say that?

COMP12.4.3R specifically states the FSCS cannot pay out compensation for the mere fluctuation in the value of an investment.

And on the subject of failing to earn interest on your cash balance:

surely they - SVS Estate [LC agents for SVS] - were wrong to keep ££ in a non-interest earning account?

Where in the Insolvency Act or Investment Bank Special Administration Regulations does it state that? Neither LC or SVS (in administration) have any obligation to obtain, let alone pay, interest on your uninvested cash while they are waiting to return it to you. Just like SVS prior to the administration had no obligation to pay interest on your cash, and it didn't.

it is a loss you have suffered and why should not FSCS pay?

You seem to be contradicting yourself, in a previous post you stated it is not a loss, and you were correct to do so. A loss can only stem from an obligation, and there exists no obligation for LC/SVS to pay interest on a cash balance.

I don't want to unduly get your hopes up, but the FSCS, at its sole discretion, can award interest on your compensation sum in circumstances it considers appropriate, and that interest is not included in the £85k limit (so can take the total sum payable above £85k). However, it's not something you can claim. It would only be interest on the compensation paid to you by the FSCS, it would be on the whole sum of compensation paid, and if the FSCS pays LC instead (as is expected) and you don't lose any of your investments/cash, your compensation would be zero and therefore so would any interest.

ascension92

LC's letter of 27 Nov states all dividends & bond coupons are being held in designated accounts for clients, but doesn't say if & when these will be paid.
The FSCS terms and conditions we have to agree with a para 5 states:
5. On payment of compensation (or any part of it) you will no longer have the right to make any claim against the Firm or any other person in respect of the Claim or a Third Party Claim, and the right to make any such claims will be vested in FSCS. Any sums that would otherwise be payable to you in respect of the Claim (including any dividend or other payment in a liquidation or compromise with creditors or scheme of arrangement)[/U] or a Third Party Claim will be paid instead to FSCS.
As we are in special administration and not liquidation etc are our divi's safe?

masonic

You remain the beneficial owner of the assets that have generated the income. Either you will be paid this income when a distribution is made by LC, or the value of that income will be part of your FSCS compensation.

pafpcg

juliamarsh wrote: »

In order for my children's holdings to be accurately checked we will need to view contract notes which are not on the portal. So I guess it is a case of emailing them to request access to view these.

I'm not sure why you need contract notes. Surely a statement would suffice as it would show individual purchases and sales?

The statement I received from LC yesterday is in fact a statement from the SVS system. I suggest you contact LC and ask them for a statement from the SVS system from the date when your children's accounts were created until today. By comparing the statements, you should be able to spot when and why the holdings differed.

pafpcg

ascension92 wrote: »

........
As we are in special administration and not liquidation etc are our divi's safe?

Dividends received since 5th August are going into a bank account for client money. According to the statement I received from LC yesterday, the dividends are aggregated with dividends received prior to 5th August. So I'd suggest that the dividends are as "safe" as any SVS client money....

desertorchid123

I notice SVS bonds have been dropped from the Client Portal account listings. Even though these are not exactly going to be worth much/ anything, I was hoping they would exist as an asset holding for now. I have queried with LC.

johnburman

Re: no interest on dividend cash - Response to Masonic

1 I agree there is not going ot be a FSCS payment for the fluctuation in assets

2 But why is dividend ££ kept in non-interest bearing accounts by LC pendign distribution? There is no reason for that

3 in doing so are not SVS guilty of breach of trust (our £££ and they are the trusteess for that pending distribution?)

4 LC are agents of SVS

5 if thye do not pay the interest to you you suffer a loss

6 is that loss not compensated by the FSCS (assuming total losses are under £85k)?

if not. Why not?


7 it is not interest on compensation. it is part of the loss you have suffered by SVS's actions and the special administration

masonic

johnburman wrote: »

Re: no interest on dividend cash - Response to Masonic

1 I agree there is not going ot be a FSCS payment for the fluctuation in assets

2 But why is dividend ££ kept in non-interest bearing accounts by LC pendign distribution? There is no reason for that

There probably isn't "no reason" for it. You just don't know the reason, and neither do I. But all similar providers (whether trading or in administration) hold their clients' ££ in accounts and don't pay those clients any interest on the cash. So there must be a reason why this is common practice.

3 in doing so are not SVS guilty of breach of trust (our £££ and they are the trusteess for that pending distribution?)

Probably not, otherwise I could raise a complaint against the various providers of my investment accounts for never having paid me a penny in interest on my accounts, despite holding credit balances almost continuously in most of them.

I invited you to find an obligation on LC in the Insolvency Act or Investment Bank Special Administration Regulations, and you've not come up with anything, so presumably you couldn't find anything.

4 LC are agents of SVS

5 if thye do not pay the interest to you you suffer a loss

5 is untrue for reasons we've already discussed.

6 is that loss not compensated by the FSCS (assuming total losses are under £85k)?

if not. Why not?

Assuming for the sake of argument that it were a loss (which it is not), it could not be subject to FSCS compensation because LC is not under any obligation to pay it and neither is SVS. The FSCS only ever compensates when an authorised financial services firm cannot meet a financial obligation. In that sense it is not really any different than the loss some people have suffered through being unable to sell their falling shares (also not considered a loss).

7 it is not interest on compensation. it is part of the loss you have suffered by SVS's actions and the special administration

That's a shame, as the FSCS is only at liberty to pay interest on compensation. As above, not getting something you'd like, but have no contractual or legal right to, is not a loss.