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  • FIRST POST
    • MK62
    • By MK62 3rd Aug 19, 7:05 AM
    • 513Posts
    • 378Thanks
    MK62
    SVS Securities - shut down?
    • #1
    • 3rd Aug 19, 7:05 AM
    SVS Securities - shut down? 3rd Aug 19 at 7:05 AM
    I tried to access my account this morning and it just times out (eventually).

    There are some rumours online that it shut down yesterday, but it's not exactly plastered all over the place, and I've never heard of the sites carrying the rumours (so no idea how reliable they are).

    https://www.shareprophets.com/views/44019/breaking-svs-securities-shutting-down

    https://www.valuethemarkets.com/2019/08/02/svs-securities-another-broker-bites-the-dust-how-much-trouble-is-aim-in/

    I did a quick search on here but came up with nothing.....this kind of thing is usually on here pretty quickly though tbh....
    Last edited by MK62; 03-08-2019 at 7:12 AM. Reason: Added links
Page 3
    • My2penneth
    • By My2penneth 5th Aug 19, 11:22 AM
    • 72 Posts
    • 37 Thanks
    My2penneth
    Hi Jamesram...
    Our posts probably crossed. Iagree with you regarding ring fencing of shares by SVS 100%. There might be a few discrepancies but these will be negligible.

    The first post was to try to emphasise the 85k figure relates to LOSSES of upto 85k...not simply 85k in ones account.
    • My2penneth
    • By My2penneth 5th Aug 19, 11:31 AM
    • 72 Posts
    • 37 Thanks
    My2penneth
    Hattie625
    Under MiFid II, they should be producing Quarterly reports.

    iWeb produce them but you have to go looking for them in their menu on their website ( the SVS issue made me check my iWeb account...I found a 25 page document for each account issued Quarterly...must admit...never checked before). It's useful for tax returns in non ISA accounts but it's only a snapshot of ones holdings at any given point in time....you could have sold all your shares the very next day!

    Of course, we can't check SVS reports on our holdings ( I know you can request transaction statements with SVS..maybe this is good enough / compliant?)
    • Gixer1
    • By Gixer1 5th Aug 19, 11:43 AM
    • 1 Posts
    • 1 Thanks
    Gixer1
    So glad that the £85K relates to losses.
    I have been dealing with SVS for over 10 years - always found them to be very professional.
    I have over £120K in an ISA spread over a number of stocks and my wife has the same.
    We also have £160K in a joint account so we are both exposed to £200K.
    I have contacted FCA and the only thing they have told me is that they are in discussions with SVS and that I can register a complaint if I feel that I am not being provided with sufficient information by SVS. I have called several numbers (main number, brokers direct lines, back office, settlements) at SVS but can only get an answerphone message on the main number - "We are in discussions with the FCA in relation to our client services. Until these discussions are concluded we will not be undertaking any regulated activities including client dealing services other than in relation to safeguarding of clients assets. We appreciate your patience during this time and we will be updating our clients as soon as there are any further developments. Thank you."
    Doesn't sound good - I guess funds will be locked up for several months before being moved to a new platform provider.
    • shez.85
    • By shez.85 5th Aug 19, 11:43 AM
    • 5 Posts
    • 0 Thanks
    shez.85
    Svs
    Out of curiosity what happens to the investments you had when they SVS went offline / out of business?

    Do you get the market worth at what the investments were at that point, will you be given the market value as at the point when the issue is rectified i.e. business sold to another broker or cash refunded or will the shares be transferred to you via another broker and you get the market value at the time?

    Thanks for the help.
    • ASN
    • By ASN 5th Aug 19, 11:46 AM
    • 1 Posts
    • 0 Thanks
    ASN
    What about the shares?
    Hello,

    I am a small investor and that is the first time it happened that my broker has gone bust. So what about my shares in different companies I bought through SVS Securities ? I called FCS this morning they acknowledge that they are under talks with the company. FCSC were lat to help and said they will not be liable to compensate for any loss.

    Not sure what to do ? Please help.

    Regards.
    • Reaper
    • By Reaper 5th Aug 19, 11:54 AM
    • 6,711 Posts
    • 5,069 Thanks
    Reaper
    Do you get the market worth at what the investments were at that point, will you be given the market value as at the point when the issue is rectified i.e. business sold to another broker or cash refunded or will the shares be transferred to you via another broker and you get the market value at the time?
    Originally posted by shez.85
    So what about my shares in different companies I bought through SVS Securities ?
    Originally posted by ASN
    Your shares will be ring-fenced so even if the company goes bust your shares are safe. You won't be able to trade in them until it all gets sorted out but they will carry on rising or falling in value. The most likely outcome is another broker will purchase all the clients from the administrator and you will then be able to trade through them.
    • shez.85
    • By shez.85 5th Aug 19, 12:01 PM
    • 5 Posts
    • 0 Thanks
    shez.85
    Thank you so much for the response!

    Trying to find any clarity on this matter was extremely hard, puts my mind at ease a bit
    • Jamesram
    • By Jamesram 5th Aug 19, 12:04 PM
    • 3 Posts
    • 6 Thanks
    Jamesram
    What happens?
    Hi Shez.85. Any shares/ fundholdings (did they deal in funds?) are held in the separate SVS Nominee ac, ie the shareholder has "nominated" SVS to keep his/her stock in that ac on his/her behalf. All this is electronic of course, and say you had BP shares, you would not be able to point to "your stock"- all BP shares managed by SVS are pooled together with other client BP shares. But neverthless, you are still the owner of those BP shares. So given that SVS are no longer, for whatever reason, able to trade and manage them for you, they will have to transfer to an organisation that can, ie a new broker such as The Share Centre. This will be done under the auspices of the FCA. Individual shareholders will not be able ask for their shares back, or for them to be sold off, until the transfer process is complete, for the main reason (I assume) is that there is no one to act on their behalf until the whole operational transfer is complete on Xdate. On Xdate you should then be able to instrcuct the new broker to sell., buy or whatever as normal. Unfortunately, this took months in the case of Beaufort Securities last year, but that broker was under FCA investigation. SVS may be simpler, or they may have a better solution, but I would guess we will be in limbo for weeks awaiting Xdate, if not months.
    • manorhouse
    • By manorhouse 5th Aug 19, 12:04 PM
    • 39 Posts
    • 1 Thanks
    manorhouse
    SVS .. Monday 5th Aug .
    I am with them , there is chat on ii that my shares are at risk and only covered for 85k .
    Other small brokers use Jarvis to hold away my understanding is svs do not use a third party .
    Phones not being answered can not log in .
    Worried greatfull for any info .
    • manted
    • By manted 5th Aug 19, 12:07 PM
    • 20 Posts
    • 8 Thanks
    manted
    Carbon Credits ?!
    As a new user not allowed to post links.(so havent posted a link to cityam article)
    you can Google Carbon credits svs deutsche to have a read.
    I keep kicking myself for not checking news related to SVS more often.

    I have just over £xxxk in an ISA with them. Glad to read all the discussions about the issue as MSE seems to be the only place where there's any info at all.
    I have a sharesoc free membership & so have contacted them. They did and are still pursuing Beaufort, so am hopeful we can also start a campaign for SVS.
    I am also being hopeful that we don't even have to go to that extent and the matter resolves quicker than Beaufort and some other broker gets our accounts.
    Last edited by manted; 10-08-2019 at 11:46 AM. Reason: removed monetary info
    • My2penneth
    • By My2penneth 5th Aug 19, 12:21 PM
    • 72 Posts
    • 37 Thanks
    My2penneth
    Shez, ASN
    Our shareholdings and cash are in limbo at the moment. Until we gain access again, the value of your portfolio is subject to normal market forces. We might wish to sell fearing a crash in one or more holdings..but we can't. There would be no compo for such losses if one or two shares were worth less (or even worthless) when we do regain control.

    ASN...your shares and cash will be held in a ring fenced accounts. You still have x quantity of shares in company x and y in company y.

    If SVS actually do go into administration then an administrator would be appointed. The administrator wants paying for handling this work. Who pays for this work...initially SVS ...but if they do not have sufficient funds in their bank account, then the administrator might legally try to access our accounts and sell shares to pay for their services ( see Beaufort Securities) . Our holdings would be sold in part and so we would incur losses. The FSCS would cover for such losses....to the 85k limit per account ( or 170k in a joint account). Whilst legal....and PricewaterhouseCoopers tried to go down this route with Beaufort Securities ...the Financial Conduct Authority "had words" with PwC and then the FSCS stepped in to cover the costs in a deal with PwC. PwC were extremely greedy.
    • masonic
    • By masonic 5th Aug 19, 12:21 PM
    • 12,439 Posts
    • 10,016 Thanks
    masonic
    New Citywire article, but no new information: https://citywire.co.uk/wealth-manager/news/private-client-broker-believed-to-have-collapsed/a1256861?section=wealth-manager

    While it's a little surprising more of the media haven't picked this up, it was a small broker, and most likely there just isn't any more information out there at the moment.

    No doubt within the next couple of days, the website will be replaced with a page announcing appointment of administrators. Existing clients will probably be contacted by email with an initial communication from the administrators. The FCA will then announce the failure of the firm on its website.

    Likely none of this will happen before the administrators have been on site and taken control of the IT side of things and made an initial assessment of the state of the platform databases.

    At the moment all anyone can do is wait for further news.
    • masonic
    • By masonic 5th Aug 19, 12:24 PM
    • 12,439 Posts
    • 10,016 Thanks
    masonic
    If SVS actually do go into administration then an administrator would be appointed. The administrator wants paying for handling this work. Who pays for this work...initially SVS ...but if they do not have sufficient funds in their bank account, then the administrator might legally try to access our accounts and sell shares to pay for their services ( see Beaufort Securities) . Our holdings would be sold in part and so we would incur losses. The FSCS would cover for such losses....to the 85k limit per account ( or 170k in a joint account). Whilst legal....and PricewaterhouseCoopers tried to go down this route with Beaufort Securities ...the Financial Conduct Authority "had words" with PwC and then the FSCS stepped in to cover the costs in a deal with PwC. PwC were extremely greedy.
    Originally posted by My2penneth
    Firms are required to have a "living will" that is funded to cover these eventualities. In the case of a simple wind-down or sale, this money should be sufficient to cover these costs. If the situation becomes more complex than that, then that's when client assets are at risk (but subject to FSCS cover). There's no reason to think at this stage that there is anything untoward about the XO side of the business.
    • My2penneth
    • By My2penneth 5th Aug 19, 12:29 PM
    • 72 Posts
    • 37 Thanks
    My2penneth
    In a nominee account where shares are pooled we are most definitely NOT the owner of shares..they are in SVS' name.

    Edit: following on from Masonic's comment above
    "If the situation becomes more complex than that, then that's when client assets are at risk (but subject to FSCS cover)"

    The shares and cash are in so called ring fenced accounts but these only protect them from creditors.
    Note, an appointed administrator can sell these shares legally to pay for their work in sorting things out...such as transferring holdings to another platform. This attack on shares caused a big kerfuffle when it was realised that the law allowed PwC to go down that route.

    Fortunately, the FCA have set a precedent with Beaufort Securities in their handling of PricewaterhouseCooper and the same will most likely apply here if do-do hits the fan.

    Legally, the shares are ring fenced but not entirely untouchable. Then FSCS would kick in.
    Last edited by My2penneth; 05-08-2019 at 12:33 PM.
    • masonic
    • By masonic 5th Aug 19, 12:39 PM
    • 12,439 Posts
    • 10,016 Thanks
    masonic
    The shares and cash are in so called ring fenced accounts but these only protect them from creditors.
    Note, an appointed administrator can sell these shares legally to pay for their work in sorting things out...such as transferring holdings to another platform. This attack on shares caused a big kerfuffle when it was realised that the law allowed PwC to go down that route.

    Fortunately, the FCA have set a precedent with Beaufort Securities in their handling of PricewaterhouseCooper and the same will most likely apply here if do-do hits the fan.

    Legally, the shares are ring fenced but not entirely untouchable. Then FSCS would kick in.
    Originally posted by My2penneth
    Yes, administrators need to be paid, otherwise they would not take on the job, and so called "trust assets" are fair game. However, expenses will be apportioned across the investor base and are unlikely to exceed £85k even for clients with a total portfolio several-fold in excess of that level. In the case of Beaufort, they were capped below that level.
    • My2penneth
    • By My2penneth 5th Aug 19, 12:52 PM
    • 72 Posts
    • 37 Thanks
    My2penneth
    Hi Masonic, thanks for that (costs being spread and cost capping.)

    Just one other note I'd like to add....the notes above and comments I believe to be fair and reasonable and I'm reasonably relaxed (2 accounts in my and my wifes name both well above 85k holdings ). Yhings will take time to work out BUT don't get too upset if you read comments on other boards that suggest that investors with SVS are in do-do...some posters do it to wind people up.

    Note ...SVS are indeed FCA regulated ...the FCA will be very very very (!) keen to resolve the issues with no harm to SVS clients..the FCA have a reputation to uphold. They would lose all credibility if an FCA regulated company left investors in the lurch,.

    Wow...its lunchtime!
    • IanManc
    • By IanManc 5th Aug 19, 12:58 PM
    • 910 Posts
    • 1,689 Thanks
    IanManc
    In a nominee account where shares are pooled we are most definitely NOT the owner of shares..they are in SVS' name.
    Originally posted by My2penneth
    The shares are held in the name of a nominee. The nominee is not the owner - the nominee holds them on behalf of the owner.

    The person who bought the shares is the beneficial owner. A nominee is just that - the person who the owner nominates to hold the shares in their name on the company's register, on behalf of the owner
    Last edited by IanManc; 05-08-2019 at 1:52 PM. Reason: Spelling
    • johnburman
    • By johnburman 5th Aug 19, 1:42 PM
    • 91 Posts
    • 19 Thanks
    johnburman
    Its 1.40pm on Monday on 5 August and why no administrator appointed? Sods law the market has taken a substantial tumble and we have no idea what's going one with *my* shares [Ok its in a pooled nominee account in SVS's name, I hope, but they are my shares beneficially!]
    • Mike NW
    • By Mike NW 5th Aug 19, 2:02 PM
    • 2 Posts
    • 0 Thanks
    Mike NW
    I have also been locked out of my investment Isa with one of my companies in the process of being taken over. I have no intention of trading at this moment in time as I suspect a significant increase in MC.
    Does the FCA only cover the original investment price or the capital gain.
    Cannot find any info or updates on the internet despite SVSXO having many clients.
    • Thrugelmir
    • By Thrugelmir 5th Aug 19, 2:08 PM
    • 65,342 Posts
    • 57,511 Thanks
    Thrugelmir
    Its 1.40pm on Monday on 5 August and why no administrator appointed?
    Originally posted by johnburman
    Somewhat more complex than the simply asking someone to take on the role and making an announcement.
    ““there really is no such thing as ‘the future’, singular. There are only multiple, unforeseeable futures, which will never lose their capacity to take us by surprise.””
    ― Niall Ferguson
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