SVS Securities - shut down?

jamei305

HSK91 wrote: »

In the future it will be worth checking the financial accounts of a broker and seeing if they are paying Corporation Tax as a real indicator of Company health/profit. For the past three years svs have paid hardly anything even with the P&L having okay profits.

I note the accountants declined to prepare the most recent filing on a going concern basis.

Thrugelmir

jamei305 wrote: »

I note the accountants declined to prepare the most recent filing on a going concern basis.

What audit qualification was given? What trading period did this relate to?

moneytroll

Dammit. How does one fill out the 'proof of debt' form if everything was stored electronically on the website? I have not made any print outs nor downloaded statements,
I have (had) about 300k with this particular broker (SVS). 50k of it was in cash.
Split between ISA and normal account.

londoninvestor

HSK91 wrote: »

Did anyone invest in the svs Bond 8.25%? It was due for redemption 30 June 2019, almost exactly one month before svs goes into administration.

When you say "due", did they actually pay the principal and final coupon on 30 June as they should?

I sort of assume they did, otherwise we'd have been having this discussion a month ago...

masonic

moneytroll wrote: »

Dammit. How does one fill out the 'proof of debt' form if everything was stored electronically on the website? I have not made any print outs nor downloaded statements,
I have (had) about 300k with this particular broker (SVS). 50k of it was in cash.
Split between ISA and normal account.

Have you received correspondence from the administrators requesting that you fill out a proof of debt form?

It is likely that the administrators will gain access to the electronic records held by the platform. If this tallies with the assets held in the nominee and clients cash accounts, then it would not normally be necessary to register a creditor claim using a proof of debt form. The administrators might not be able to make that determination immediately and invite creditor claims, though if they have access to the platform database they would be able to pre-populate the form with the total balance of cash held at the time they took over. Since most people will hold at least some investments, which will fluctuate in value as the administration progresses, a simple proof of debt form will be unsuitable at this stage, but might be appropriate later if the administration moves into a liquidation. This is a fairly unlikely scenario, though.

moneytroll

I haven't received any forms or communication. In fact, I was completely unaware of it until I came across this thread today!

i went to the SVS website, which directs you to the admin website: https://www.leonardcurtis.co.uk/SVS/

And the website asks you to submit a proof of debt form. I have details of all my investments on my spreadsheet however I have no 'proof' that I have them!

masonic wrote: »

Have you received correspondence from the administrators requesting that you fill out a proof of debt form?

It is likely that the administrators will gain access to the electronic records held by the platform. If this tallies with the assets held in the nominee and clients cash accounts, then it would not normally be necessary to register a creditor claim using a proof of debt form. The administrators might not be able to make that determination immediately and invite creditor claims, though if they have access to the platform database they would be able to pre-populate the form with the total balance of cash held at the time they took over. Since most people will hold at least some investments, which will fluctuate in value as the administration progresses, a simple proof of debt form will be unsuitable at this stage, but might be appropriate later if the administration moves into a liquidation. This is a fairly unlikely scenario, though.

Thrugelmir

HSK91 wrote: »

In the future it will be worth checking the financial accounts of a broker and seeing if they are paying Corporation Tax as a real indicator of Company health/profit. For the past three years svs have paid hardly anything even with the P&L having okay profits.

No going to provide any indication of misconduct. Source and application of funds statement is key. Then the balance sheet. If you are focussing on financial strength.

jamei305

moneytroll wrote: »

I haven't received any forms or communication. In fact, I was completely unaware of it until I came across this thread today!

i went to the SVS website, which directs you to the admin website: https://www.leonardcurtis.co.uk/SVS/

And the website asks you to submit a proof of debt form. I have details of all my investments on my spreadsheet however I have no 'proof' that I have them!

They advise you not to:

A formal claims process is being put in place. Owing to there being over 13,500 clients this will provide the most cost effective way of dealing with their claims. There will be regular updates on the Joint Special Administrators’ website, the Joint Special Administrators are currently working to set up an online Claims Portal, on which Clients with claims to client monies, custody assets or both will be able to agree their claims with the Joint Special Administrators. Please note that if you have filled out a Proof of Debt form, or attempted to lodge a claim via email, then these will not be accepted as a formal claim. The Joint Special Administrators are working to set up the Claims Portal as quickly as possible and will inform clients via the website www.leonardcurtis.co.uk/SVS as soon as it is available.

masonic

moneytroll wrote: »

I haven't received any forms or communication. In fact, I was completely unaware of it until I came across this thread today!

i went to the SVS website, which directs you to the admin website: https://www.leonardcurtis.co.uk/SVS/

And the website asks you to submit a proof of debt form. I have details of all my investments on my spreadsheet however I have no 'proof' that I have them!

You are not a creditor of SVS Securities plc, unless or until the administrator determines that there is a shortfall in the assets held in trust by the nominee company. At that point you could register as an unsecured creditor to the extent that you would suffer a shortfall in repayment when the assets are realised. It may be rather pointless to do this though, as you may be able to go directly to the FSCS for any shortfall (up to £85k). Given the speculation about the financial position of the company, it is unlikely there will be any money available to be distributed to unsecured creditors anyway.

Did you read the "Notes to Clients and Creditors" document? Note that clients and creditors are being differentiated.
It states: "Clients will receive formal correspondence shortly setting out the process for making a claim in order to receive a distribution for amounts owed." As mentioned above, I would be surprised if the administrators did not provide each client with a summary of their investments and cash position.

I don't think you need to worry about not having 'proof'. What 'proof' could possibly be accepted by the administrators if they could not rely on the company's own records?

My2penneth

Don;t worry about not having contract notes. They mean nothing anyway as you might have sold the shares the very next day so they are not proof.

Reading the blurb from the special administrators (SA for short) - they will contact you by 27th September by which time they will have assessed what's in the pool and what they believe your share is.

Note: They say that our custody assets (shares) will be used to fund their work ...(see the case Beaufort Securities that kicked off last year and read what happened) - they (the administrators are legally allowed to access the ring fenced assets and use them to fund their work. That's in Section D of the Leonard Curtis notes. If we suffer a loss as a result, then that;s when you approach the FSCS.

There are over 13500 clients with SVS. They are setting up a portal to deal with our claims.

The best resolution is for the FSCS to step in , pay the Special Administrators for their work and then allow the shares to be transferred to anotehr platform. This is what happened with Beaufort. The administrators (PwC) charged everyone £10k but the FSCS paid this.

It's early days.