SVS Securities - shut down?

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  • johnburman
    johnburman Posts: 727 Forumite
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    The scammers will provide a superb service... it's just you will not get a penny from them. Ever.
  • Reaper
    Reaper Posts: 7,283 Forumite
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    masonic wrote: »
    1. It is too early to know the answer to this. There is still a chance the accounts could be sold to another provider, in which case you'd regain access to your existing investments.
    In my not-at-all professional opinion this is by far the most likely outcome. The only question mark in my mind is whether any deductions need to be made first. Since any such deductions should be covered by the FSCS I doubt it.

    NB I am talking just the XO accounts. If you invested in their discretionary funds or bonds that is a different matter.
  • Ravima
    Ravima Posts: 48 Forumite
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    no contact here in Ireland from the scammers.
  • masonic
    masonic Posts: 23,418 Forumite
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    Reaper wrote: »
    In my not-at-all professional opinion this is by far the most likely outcome. The only question mark in my mind is whether any deductions need to be made first. Since any such deductions should be covered by the FSCS I doubt it.

    NB I am talking just the XO accounts. If you invested in their discretionary funds or bonds that is a different matter.
    Agreed, subject to confirmation that CASS rules have been followed and trust assets are therefore ringfenced and all accounted for. The admininstrators' proposals due towards the end of next month should clarify this situation.
  • johnburman
    johnburman Posts: 727 Forumite
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    Why would LC need to wait until the end of September to be able to confirm that the CASS regs apply and that the shares XO clients think they own actually belong to them. Or they have reported the matter to the police.

    Any thoughts on any action from the London Stock Exchange.. Or action that can be taken against them. What benefits to clients are their for dealing with Members as opposed to non members?
  • Monsieur_Bourse
    Monsieur_Bourse Posts: 91 Forumite
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    I can confirm that I received the same e-mail yesterday that LEAR1 received, which is reassuring that at least they are aware of my e-mail address, if not my SVS account.

    I have still not received the letter by post from LC, that clients in the UK have received, hopefully this problem will be resolved if indeed I do receive a response to my e-mail.

    I have had no contact from any scammers, a bit disappointed really, if I had then at least somebody would know that my account exists!
  • masonic
    masonic Posts: 23,418 Forumite
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    johnburman wrote: »
    Why would LC need to wait until the end of September to be able to confirm that the CASS regs apply and that the shares XO clients think they own actually belong to them. Or they have reported the matter to the police.
    They won't need to wait, but they will need to do a full audit and liaise with the FCA to establish whether the FCA's concerns that CASS rules had been breached are unfounded. I think it is reasonable for this package of work to be completed by the time the administrators release their proposals, but of course the process could be delayed by the FCA, who are not known for their responsiveness (2 years to act on the original concerns about SVS).
    Any thoughts on any action from the London Stock Exchange.. Or action that can be taken against them. What benefits to clients are their for dealing with Members as opposed to non members?
    The primary purpose of a Special Administration is to protect the London Stock Exchange from any damage arising from SVS being shut down. There's no reason to think the LSE has suffered any impact, nor that they are implicated in any way in the actions of SVS. As far as I'm aware, there is an active investigation into this aspect of the insolvency.

    The main benefit of dealing with a member is you can deal directly in the market, whereas with a non-member your deals might be routed through another company. Providing your broker is properly authorised and a member of the FSCS, I don't believe there is any difference in terms of protections you might have in a situation like this.
  • johnburman
    johnburman Posts: 727 Forumite
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    masonic are you saying tha tthe LSE are carrying out a separate investigaiton of SVS, or are you referring to LC's work?

    There is no mention of the LSE in the Special Administration ...it is not mentioned. I dont suggest that the LSE is involved in SVS, but there were a full member. Do *clients* get any protection from this, or is there any due diligence done on them by the LSE?

    I know I was given 'comfort' by SVS being a full member of the LSE....foolishly I though that this gave me additional protection.

    As I asked, anyone remember that bit of the LSE website about protection of clients by LSE Members where segregation was mentioned?

    PS: Do the LSE audit or carry out ongoing checks on their members? If so how do we (or the FCA) get copies?
  • olderbutnowiser
    olderbutnowiser Posts: 85 Forumite
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    As I understand it, LC will eventually allow us to access a website that (hopefully) will show us the shares etc that we were invested in together with the cash balances as at 5 August.


    Dividends payable after that date will accrue to LC in some sort of overall pot and will presumably need to be subsequently allocated to their correct beneficial owners.


    For those of us who have retained offline copies of our portfolios, it may not be a bad idea to keep track of the dividends as and when they were due to be paid. I always did this for tax purposes for the shares in my trading account but have now started to do so for my ISA account as well.


    It can be a bit tedious but will will at least give us an idea of the true value of our holdings at any subsequent point in time and should assist if there is any dispute as to the correct amount of dividends due to each of us.
  • masonic
    masonic Posts: 23,418 Forumite
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    johnburman wrote: »
    masonic are you saying tha tthe LSE are carrying out a separate investigaiton of SVS, or are you referring to LC's work?
    I'm referring to the FCA's work. This might involve some information flowing from LC, but LC's main objective at this time will be to ascertain the situation relating to assets and the positions of investors and creditors, not investigate the wider implications of the actions or inactions of the company and its directors.
    There is no mention of the LSE in the Special Administration ...it is not mentioned. I dont suggest that the LSE is involved in SVS, but there were a full member. Do *clients* get any protection from this, or is there any due diligence done on them by the LSE?
    It's not surprising there is no mention of LSE. Membership of LSE just gives the company access to the direct trading platform. Like many clubs, there are some rules and some eligibility criteria and if a firm is found to fall foul of those I suppose it could be kicked out. However, LSE does not have any role in regulation of its member companies, nor does it afford any protections to customers of a member company (other than some assurance that members should be adhering to their rules). Not to mention the assurance that you'll get the enhanced access to the markets a member is afforded.
    I know I was given 'comfort' by SVS being a full member of the LSE....foolishly I though that this gave me additional protection.

    As I asked, anyone remember that bit of the LSE website about protection of clients by LSE Members where segregation was mentioned?

    PS: Do the LSE audit or carry out ongoing checks on their members? If so how do we (or the FCA) get copies?
    As above, LSE has some rules which it expects member companies to follow. That's the 'protection' that was probably advertised.

    Regulation is the FCA's job. One it does very poorly IMHO. One might think the FCA would carry out ongoing checks on authorised firms, but in practice there is no evidence of this and plenty of examples of firms that have acted in the most improper manner for years before anything was done.
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