SVS Securities - shut down?

masonic

englishmas wrote: »

What I understand from the above discussion that XO account holders are relatively safe provided the broker is FCS approved.

What about Advisory account holders as I believed there were many with the SVS.

Yes XO account holders are relatively safe if they hold their assets with an FCA authorised provider.

Advisory account holders have all of the same protections of XO account holders, but also protection against losses resulting from bad advice.

My2penneth

When we're eventually transferred to a new platform I would like to see the information on dividends received from April 2019. I will need this for my tax return for year April 2019- April 2020 (and to check for any errors/missing divis, of course).

I've emailed LC to ask whether this information will be transferred across onto the new platform. I need to know what proportion is dividends classed as "Foreign" income so I can split it out into the appropriate section of the tax return.

(fortunately I had already downloaded April 18- April 19 for which I intend to submit my tax return very soon...very soon!)

johnburman

Good post My2penneth! Please post what the reply from LC is.

My2penneth

Will do! .......

My2penneth

My2penneth wrote: »

When we're eventually transferred to a new platform I would like to see the information on dividends received from April 2019. I will need this for my tax return for year April 2019- April 2020 (and to check for any errors/missing divis, of course).

I've emailed LC to ask whether this information will be transferred across onto the new platform. I need to know what proportion is dividends classed as "Foreign" income so I can split it out into the appropriate section of the tax return.

(fortunately I had already downloaded April 18- April 19 for which I intend to submit my tax return very soon...very soon!)

Reply received

"Thank you for your email. The simple answer to your question is yes. The administration will be in situ for a period of time after the end of the 2019/2020 tax year (5th April 2020) and we produce Consolidated Tax Vouchers for clients on request.

If the transfer of clients to the nominated broker takes place before the end of the tax year, you can expect to receive two separate tax vouchers for the period – one from SVS Securities PLC and one for the period during which your account(s) are operated by the new broker."

pafpcg

My2penneth wrote: »

Reply received

"Thank you for your email. The simple answer to your question is yes. The administration will be in situ for a period of time after the end of the 2019/2020 tax year (5th April 2020) and we produce Consolidated Tax Vouchers for clients on request.

If the transfer of clients to the nominated broker takes place before the end of the tax year, you can expect to receive two separate tax vouchers for the period – one from SVS Securities PLC and one for the period during which your account(s) are operated by the new broker."

What do they mean "IF"!
We were promised January & completed by April.....

snipkin

Thank you Masonic for your explanation - you are quite right - losses are unlikely to amount to anything like £85,000. But I still think there is no harm in having some kind of warning. And, importantly, it is the point you make that we should not place all our investments with one broker (which, stupidly, I seem to have done with SVS) which should be highlighted to everyone investing in the stock market. I have certainly learnt my lesson about that!

johnburman

2 points:

1 to snipkin. Losses are *unlikely* to exceed £85k, but MAY do so. What is the formula that is going to be used to calculate this.

2 to pafpcg. Since when have LC met ANY deadline they set themselves? And they do not tell us/public anything. Of course we are not on the Creditors Committee BUT NOW IS THE TIME THE COMMITTEE should be pressurisng LC to be getting their act together and to tell the clients more. The 10 Jan - the bar date - is approaching.

masonic

johnburman wrote: »

1 to snipkin. Losses are *unlikely* to exceed £85k, but MAY do so. What is the formula that is going to be used to calculate this.

The formula may simply be loss = X·V where V is the value of your investments and X = costs attributable to clients / total client assets under management (~£278m). Alternatively, loss may be capped, in which case the formula is more complex, but the worst case loss is reduced.

LC racked up ~£800k of costs in the first 6 weeks of the administration. If they continued at that rate, costs would be up at about £3m by now (just over 1% of AUM). It's hard to envisage a scenario in which they would exceed 5% of AUM in the end, so those at risk of exceeding the £85k limit would be those holding investments valued at >£1.7m with SVS.

PwC capped the costs of the Beaufort administration at £10k per investor and that was a much more complex administration. But this was only after a creditor backlash at the initial fees proposal.

johnburman

Masonic you say of the costs of the Beaufort administratio "But this was only after a creditor backlash at the initial fees proposal."

But we do not know what the "initial fees proposal" is! It is some proportion of assets/cash with a cap: of how much or what we have no idea! [except for the 2 differing options put forward by the FSCS as examples]