SVS Securities - shut down?

eskbanker

masonic said: <process explanation>

An impressively patient and tolerant response to yet another paraphrasing of "why is it taking so long?"!

rnf11

Eskbanker,

A splendid point, beautifully made. Though I rather doubt that the hint will be taken...

[Deleted User]

It's incredible how some consumers display their impatience and ingratitude on here. 
It's almost as if they imagine they own the shares they buy! 

eskbanker

ZingPowZing said:

It's incredible how some consumers display their impatience and ingratitude on here. 
It's almost as if they imagine they own the shares they buy! 

They can imagine what they like but if they choose to hold shares via flaky middlemen that need to go through complex and time-consuming recovery procedures then they have to accept that regaining access isn't an instantaneous process, despite the repeated 'how hard can it be?' denials....

johnburman

The flaky middle man here was a FCA regulated broker based in the City of London who had been trading for almost 20 years who was a Member of the London Stock Exchange. And you have to use a middleman to hold an ISA.
The company went into administration in August 2019 and the new broker is said to be carrying out a due diligence exercise only now. Why... at the risk of repeating myself.. the delay? The bar date has passed... Why the delay? Come on Creditors Committee AND FCA stop the LC delay. 

[Deleted User]

SVS securities abused £260m of investments. The administrator is charging in the region of £50m to get it back. Money that comes out of client funds. Six months on, clients don't know when or where their investments will re-appear, and those with over £85k invested don't even know whether they get all their money back. And it's their fault?

Just another example of the complacency of the UK financial services industry and the poverty of expectations that keeps quiet the public in the face of situations that just would not be tolerated elsewhere. Contrast the USA where SIPC protection amounts to nearly £400k or £190k cash, with an undertaking to return to the investor the exact number of shares in his ownership.
https://www.investopedia.com/articles/investing/050515/what-happens-when-stock-broker-goes-bust.asp

[Deleted User]

johnburman said:

The flaky middle man here was a FCA regulated broker based in the City of London who had been trading for almost 20 years who was a Member of the London Stock Exchange. And you have to use a middleman to hold an ISA.
The company went into administration in August 2019 and the new broker is said to be carrying out a due diligence exercise only now. Why... at the risk of repeating myself.. the delay? The bar date has passed... Why the delay? Come on Creditors Committee AND FCA stop the LC delay. 

That is correct, johnburman. The LSA site has a list of FCA approved stock brokers, in alphabetical order. There are less than 90 and SVS Securities is one of them.

eskbanker

johnburman said:

The flaky middle man here was a FCA regulated broker based in the City of London who had been trading for almost 20 years who was a Member of the London Stock Exchange. And you have to use a middleman to hold an ISA.

ZingPowZing said:

SVS securities abused £260m of investments. The administrator is charging in the region of £50m to get it back. Money that comes out of client funds. Six months on, cients don't know when or where their investments will re-appear, and for those with over £85k invested don't even know whether they get all their money back. And it's their fault.

Just to be clear, I'm not saying it's SVS customers' fault as such, just observing that using relatively small players carries increased risk of failure (and being regulated doesn't guarantee financial stability as such, but should provide protection against consequent losses via FSCS), and that such failures are laborious to unpick.

[Deleted User]

The above is correct. The LSE site has a list in alphabetical order of FCA approved stock broking firms. There are less than 90 named and SVS is one of them.

Thrugelmir

johnburman said:

The company went into administration in August 2019 and the new broker is said to be carrying out a due diligence exercise only now. Why... at the risk of repeating myself.. the delay? The bar date has passed... Why the delay? Come on Creditors Committee AND FCA stop the LC delay. 

Perhaps the new broker has had to put both a plan and resource into place.  Companies just don't have a team of people stting around twiddling their thumbs doing nothing. Staffing is geared to operational levels. 

When any company goes into administration etc. Not easy to take over the reins. As a huge amount of knowledge and information gets lost. With employees leaving from day one. Everything takes far longer.