SVS Securities - shut down?

Danie5

OK. I presume the money part of our assets can now be paid out to us. Will they pay into our bank accounts, or not? The shares I suppose will be transferred to the new broker, but who is he and what is the time scale now?

masonic

Danie5 wrote: »

OK. I presume the money part of our assets can now be paid out to us. Will they pay into our bank accounts, or not?

When the administrators prepare the distribution plan, it will contain details of how they intend to make the distributions. They will need to get approval for this plan from the clients and the court. It might involve an electronic funds transfer to a bank account specified by each client, or it might not.

The shares I suppose will be transferred to the new broker, but who is he and what is the time scale now?

The process for shares will be the same as for money. They are "aiming to obtain court approval for the distribution plan during the first quarter of 2020", and the transfer would take place some time after that.

https://www.leonardcurtis.co.uk/wp-content/uploads/2019/11/Consolidated-FAQs-01.11.2019.pdf

All being well, it could be achieved by the end of the tax year. Once they've compiled a summary of exactly what needs to be transferred, they will be in a position to finalise discussions with potential brokers and pick one to receive the accounts, presuming there is still at least one interested party.

Danie5

Will they now deposit our money into our bank accounts or not? I suppose that our shares will now be transferred to the new broker, and who is that? I really hope we can now get rid of this mess.

masonic

Danie5 wrote: »

Will they now deposit our money into our bank accounts or not?

As per my previous response, they might decide to do that or they might not. Alternatives would be sending a cheque in the post or transferring the cash to a new broker along with the investments. Once they have worked out these details they will need to inform clients because they will need clients permission to proceed.

I suppose that our shares will now be transferred to the new broker, and who is that? I really hope we can now get rid of this mess.

As per my previous post, it wouldn't have been possible to select the broker until after the bar date. Now the bar date has passed... "they will be in a position to finalise discussions with potential brokers and pick one to receive the accounts, presuming there is still at least one interested party."

The use of the word "now" in your post is probably quite optimistic. There will be at least a few more weeks to wait for this to be over.

johnburman

Surely the cash will follow the shares. Both will go to the new broker chosen. Not that we have been told who that is, or what their charges etc. will be.

I wonder if this will be in the 'Distribution Plan'? This should be prepared and ready to be distributed on monday by LC. Don't suppose it has tho'.

masonic

johnburman wrote: »

Surely the cash will follow the shares. Both will go to the new broker chosen. Not that we have been told who that is, or what their charges etc. will be.

I wonder if this will be in the 'Distribution Plan'? This should be prepared and ready to be distributed on monday by LC. Don't suppose it has tho'.

As mentioned above, no sensible broker would commit to take on the accounts of SVS clients without receiving details of of those accounts. Said account details couldn't be communicated until after the bar date - last Friday at 5 pm.

Most likely nobody at LC has been working on the case since the bar date, and it is unlikely representatives of any interested brokers would have been available over the weekend.

So today would mark the start of preparations for a distribution plan, not the end. A reasonable expectation would be that the broker is selected and the plan finalised and sent out to clients within the next 2-3 weeks - perhaps longer if they need to wait for clients "providing documents or evidence or responding to requests for further information".

LEAR1

masonic wrote: »

As per my previous response, they might decide to do that or they might not. Alternatives would be sending a cheque in the post or transferring the cash to a new broker along with the investments. Once they have worked out these details they will need to inform clients because they will need clients permission to proceed.

Thanks as ever for your reasoned and insightful comments Masonic.

One observation / question on the above - if they decide to distribute cash by way of cheque, surely we'd lose the benefit of the ISA wrapper? I'm hoping therefore that they don't do that, and the cash follows the shares to the new broker, even if that means lack of access to our cash for a little bit longer...

johnburman

That's why the money will follow the shares and will not be split away from them

masonic

LEAR1 wrote: »

One observation / question on the above - if they decide to distribute cash by way of cheque, surely we'd lose the benefit of the ISA wrapper? I'm hoping therefore that they don't do that, and the cash follows the shares to the new broker, even if that means lack of access to our cash for a little bit longer...

As johnburman says, the easiest solution for ISA accounts is to transfer the whole ISA. However, if there were to be some substantial delay the administrators could at their discretion and with HMRC's permission issue cheques along with an ISA reinstatement certificate. This would likely need to be done on a case by case basis and wouldn't be open to those with cash exceeding their previous tax year ISA subscriptions (though they could accept a cheque deemed a withdrawal from the ISA). It is the sort of thing that could make sense in cases where clients were put into financial hardship by the wait so far. Though I doubt many have meaningful amounts of cash on account.

Twonko

Communication from LC is useless, so I will be ringing them today to bother them for info, having been away for a few weeks. It would be easier for them to keep people updated on their website rather than field calls from p1ssed off customers. I wonder why they don't?