SVS Securities - shut down?

manorhouse

Just to put it out there I have interactive brokers in mind when I eventually get my shares back .
They  charge just £2 to deal and seem to have USA protection which is much more .
i read something about Europe on here there protection is less not more .
50 000 euro I was told ?

masonic

manorhouse said:

Yes that is correct and I have refered to it before . What’s more if I didn’t agree by 10th ( it appears you were agreeing to claim , I wondered why one wouldn’t ).
The cost would of been a very small percentage of my portfolio as I was curious so asked .
I have said before there appears to be a lot of scaremongering on here .
who is behind this site ? could they have some interest in advising using the big brokers .

Presumably you are referring to this post. It's very easy for things to get missed in a very active thread like this one. Nobody posting in this thread is likely to be associated with the site, anyone can sign up and post here. There are advisers who post in the forum and might have contributed to this thread, but they generally state this in their signatures.

The commentary around avoiding such a situation in future has centred around big DIY investment firms, nobody has tried to push people away from execution only and towards investing through an adviser. While it is great news the fees are being capped (or projected to be below the level any investor would lose out) in this case, the risk does remain that a future insolvency could see those with the largest portfolios lose out. I have always maintained that risk is low for those with less than ~£1m held with a single provider.

masonic

manorhouse said:

Just to put it out there I have interactive brokers in mind when I eventually get my shares back .
They  charge just £2 to deal and seem to have USA protection which is much more .
i read something about Europe on here there protection is less not more .
50 000 euro I was told ?

The EU compensation limit is EUR 100,000. That is the origin of the UK compensation limit of £85k (which dropped to £75k at one point due to exchange rate movements). Interactive brokers has cover from the SIPC, which is another industry funded scheme, offering up to $500k protection, and they also have insurance up to $30m from Lloyds of London. Compensation does fall back to the FSCS limit for some investments. Edit: SIPC protection does not apply to investors using Interactive Brokers (UK) as per bowlhead's comment below

I'm not sure you have the pricing correct. For example, for trading UK shares, the fee is either 0.05% (£5 for a £10k order, £1 for a <£2k order), or a flat rate of £6 depending on your account and order type.

https://www.interactivebrokers.co.uk/en/index.php?f=39753&p=stocks2

https://www.interactivebrokers.co.uk/en/index.php?f=39753&p=stocks1

bowlhead99

manorhouse said:

Just to put it out there I have interactive brokers in mind when I eventually get my shares back .
They  charge just £2 to deal and seem to have USA protection which is much more .

At IB you're not going to get the USA protection for investment firms because you won't be dealing directly with their US head office, but instead with a local entity on this side of the pond. 

For UK stocks it's £6 a trade and they have monthly minimums (waived if you have $100k with them but otherwise $10 a month for a normal account, $20 a month for a small account with under $2k in it)

i read something about Europe on here there protection is less not more .
50 000 euro I was told ?

You get the protection set by the local regulator where your firm is operating. For example in Ireland or Germany it's 90% of your balance up to €20k.

masonic said:

manorhouse said:

Just to put it out there I have interactive brokers in mind when I eventually get my shares back .
They  charge just £2 to deal and seem to have USA protection which is much more .
i read something about Europe on here there protection is less not more .
50 000 euro I was told ?

The EU compensation limit is EUR 100,000. That is the origin of the UK compensation limit of £85k (which dropped to £75k at one point due to exchange rate movements). 

The €100k in Europe is the depositary compensation limit relating to cash held in the account, but once your money is invested in investment assets it is no longer cash on deposit so you would use the investments compensation scheme; while the UK recently aligned investment protection with cash protection at £85k, most of Europe doesn't have that alignment. The €50k for Europe was proposed at Europe level  in 2010 as an increase from '90% up to €20k', but not all the countries went along with it, so it has no force and the individual countries can do what they want. UK decided to go a lot higher (as financial services is one of our big industries in this country) while others didn't.

masonic

bowlhead99 said:

masonic said:

manorhouse said:

Just to put it out there I have interactive brokers in mind when I eventually get my shares back .
They  charge just £2 to deal and seem to have USA protection which is much more .
i read something about Europe on here there protection is less not more .
50 000 euro I was told ?

The EU compensation limit is EUR 100,000. That is the origin of the UK compensation limit of £85k (which dropped to £75k at one point due to exchange rate movements). 

The €100k in Europe is the depositary compensation limit relating to cash held in the account, but once your money is invested in investment assets it is no longer cash on deposit so you would use the investments compensation scheme; while the UK recently aligned investment protection with cash protection at £85k, most of Europe doesn't have that alignment. The €50k for Europe was proposed at Europe level  in 2010 as an increase from '90% up to €20k', but not all the countries went along with it, so it has no force and the individual countries can do what they want. UK decided to go a lot higher (as financial services is one of our big industries in this country) while others didn't.

Thanks, yes I forgot the investment limit was lower across most of Europe. But to be clear if someone were to invest through Interactive Brokers (UK) Limited, their compensation limit would be the FSCS limit of £85k.

johnburman

Manorhouse in reality I think what you suggest is correct but there has been no confirmation from LC on this. There may be those with a large holding and a super large cash balance who will have to pay something. We di NOT know the formula LC will use to calculate who pays if uncompensated losses exceed 85k GBP. If you do know what the formula is do tell us all. 

[Deleted User]

Excellent news from manorhouse; I am delighted for those stuck in administration purgatory, but only a very small subset read this forum.
This being the case, surely it behoves the administrator to put the message up front and centre on page1 of the dedicated site, so everyone can share the good news.

bowlhead99

ZingPowZing said:

Excellent news from manorhouse; I am delighted for those stuck in administration purgatory, but only a very small subset read this forum.
This being the case, surely it behoves the administrator to put the message up front and centre on page1 of the dedicated site, so everyone can share the good news.

Their latest update a week ago confirmed that they had identified someone to transfer the client assets to, and that they are required to prepare and circulate a distribution plan and explanatory statement which will outline the costs of the transfer and how they are working with the FSCS to seek to meet the costs of the transfer for eligible clients. And that they will send out their first progress report later this month.

Having the FSCS meet the costs for eligible clients - rather than having the eligible clients lose assets to the costs of administrating the failed firm and then claim it back from FSCS - is a practical approach that's been used in other administrations.

In practice if your share of the costs are less than £85k, you won't lose anything that's not covered by FSCS. If the administration and transfer has cost (e.g.) only 10% of the client assets and you don't have as much as £850k of assets with SVS, you should be fine. You just need to wait until things take their course. That has been the message since the early days of the thread, and if someone lodging a claim for a few tens of thousands of assets rather than millions asks the administrator how it will work, at the same time as agreeing with the statement of assets showing under their name on the portal, they will probably be told that they won't make an unrecovered loss.

However, until they have a formal Progress Report, Distribution Plan and Explanatory Statement to share with the clients and regulator, the periodic updates posted on the website and the comments from the more experienced posters here are not going to use the language you've earlier demanded such as 'watertight', 'all' etc. 

[Deleted User]

"Prefer", not "demanded" - since you're talking about the use of language.

bowlhead99

ZingPowZing said:

"Prefer", not "demanded" - since you're talking about the use of language.

Yes, I had mixed up the sentiments from your various posts. You had first seemed incredulous that the investors didn't get their rights under law last August, and were clear that they should get 'absolutes' in language rather than hopes and dreams and uncertainty. Really , they are getting their rights under the law, and the certainties are being published at such time as they become certain.