SVS Securities - shut down?

johnburman

Some news on Reyker Securities below.  [linkd not inlcuded]

Smith & Williamson LLP, the Joint Special Administrators of Reyker Securities, have posted a notice providing information on their work to the clients and creditors of the firm which entered administration in October 2019.

The JSAs explains that good progress has been made in line with the anticipated timescales previously reported.

The administrators confirm that an offer for Reyker Securities’s business and assets has been accepted (subject to contract) which will facilitate the transfer of all client assets to a regulated broker.

The JSAs’ Reconciliation of client assets has been completed and no material client money discrepancies have been identified. The JSAs’ reconciliation of custody assets identified a number of inconsistencies between the computer records, CASS best practice and the physical certificates held and work is ongoing to resolve these. The JSAs are advised by their independent expert that this should not result in a client account shortfall, but this remains a (small) possibility.

The bespoke online client portal is in its final stages of development and is anticipated to launch before the end of February 2020 once final testing has been completed. Once the client portal is ready, the JSAs will issue formal notice of a bar date, being the date by which clients must submit a claim in respect of their client money and custody assets. On present information, it is anticipated this will be sent before the end of February 2020.

Clients do not need to take any action at this time.

The administrators continue to liaise with the FCA and FSCS in respect of the progress of the Special Administration and in relation to potential claims that may arise from clients where there is any shortfall in assets returned to clients.

The administrators’ initial assessment is that the majority of clients will be eligible for cover from the FSCS compensation scheme. The JSAs intend to work with the FSCS so that any compensation due to eligible clients may be paid direct to the JSAs and at the same time as any transfer to the purchaser. This will, hopefully, mitigate the need for any eligible client to submit a direct claim to the FSCS themselves and should facilitate a transfer of each eligible clients’ assets in whole.

manorhouse

Am I correct in thinking this is another broker in admin .
and SVS are a bit further on in the proses then this lot .
Have any other posters any ideas on who they might go with in a few months time ?
Has the broker selected by any admin of any failure not been the share Center ?

johnburman

Went into administration way after svs and will be completed way before. Although to be fair we don't know the facts and this may be much simpler than svs. The only people who are likely to know are the FCA and they are keeping remarkably quiet. When is their second report into svs due? 

masonic

johnburman said:

Went into administration way after svs and will be completed way before. Although to be fair we don't know the facts and this may be much simpler than svs. 

According to the text you pasted they went into administration 2 months after SVS. But it doesn't look like they will be completed "way before". S&W are still working on the client portal, which is planned to be completed later this month. After that they will need to set a bar date, which will not be any earlier than April, then nominate a broker and begin negotiating terms. Only then will they have caught up to where LC are in the process as of mid-February.
It looks to me like the timescales will not be significantly different between these two administrations.

johnburman said:

The only people who are likely to know are the FCA and they are keeping remarkably quiet. When is their second report into svs due? 

The FCA is not likely to know much about the administrative process beyond its regulatory requirements. The administrators would be best placed to comment on the complexity of their own work and generally do so in their reports to creditors.
The reporting timetable for administrations and special administrations is 6 monthly, so you can expect one from LC before the end of March.

manorhouse

Looks like there is a reluctance to talk about different brokers we might end up with or ones to move on to.
I am sure some of you would of noticed news of the accepted offer for the share centre by interactive investor.
My earlier question of any other broker in the running in reality might well of been answered by this lol 

manorhouse

bowlhead99 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 .

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.

I was surprised Ireland and Germany gave less protection then the Netherlands  good news for UK after brexit maybe,  as i always thought Dublin might take business away from London .

bowlhead99

manorhouse said:

I was surprised Ireland and Germany gave less protection then the Netherlands  good news for UK after brexit maybe,  as i always thought Dublin might take business away from London .

Netherlands and Ireland/Germany's investor compensation regimes are substantially the same AFAIK. Dublin has a bigger investment funds industry than Netherlands, for example large numbers of EU ETFs and ICVCs are domiciled there and the funds are efficient to use because of a good tax treaty network. They will certainly be looking to take business away from London, just like Paris, Frankfurt, Amsterdam and the like.

Netherlands does have a good tax treaty network and well understood rule of law so many investors from outside the country will use a Netherlands holding company as part of the platform to invest down into other EU businesses - sometimes in conjunction with an Irish or Luxembourg structure. So there's a financial services industry, but not nearly the scale of the UK - maybe a tenth of the AUM. They are not the front runner to take banking or investment funds jobs post Brexit.

masonic

The Netherlands Investor Protection Scheme is limited to €20k. https://www.toezicht.dnb.nl/en/2/51-202210.jsp

manorhouse

Thank you bowlhead and masonic sharing info always good , you two seem to know your stuff are you just ordinary posters or do have some connection to the site .
I have sent info to Degiro i believe they are expanding here in the UK fast and many trust them .
( As i said they told me  50K )

bowlhead99

masonic said:

The Netherlands Investor Protection Scheme is limited to €20k. https://www.toezicht.dnb.nl/en/2/51-202210.jsp

Yes, that's why I said 'substantially the same' as Ireland. The Dutch one is 100% up to €20k, instead of 90% to €20k in Ireland. I don't imagine that someone with a £100k investment portfolio is going to pick Amsterdam over Dublin solely on the basis of an extra €2k of coverage in exchange for having to correspond with a compensation scheme whose first language isn't English. So, the Netherlands higher limit on their compensation scheme shouldn't mean that Ireland has no chance to thrive.