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  • FIRST POST
    • MK62
    • By MK62 3rd Aug 19, 6:05 AM
    • 478Posts
    • 349Thanks
    MK62
    SVS Securities - shut down?
    • #1
    • 3rd Aug 19, 6:05 AM
    SVS Securities - shut down? 3rd Aug 19 at 6:05 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 6:12 AM. Reason: Added links
Page 1
    • jamei305
    • By jamei305 3rd Aug 19, 6:36 AM
    • 461 Posts
    • 570 Thanks
    jamei305
    • #2
    • 3rd Aug 19, 6:36 AM
    • #2
    • 3rd Aug 19, 6:36 AM
    They are currently being chased by creditors for 50 million, which may or may not be related:


    https://www.thebureauinvestigates.com/stories/2019-05-07/how-major-banks-turned-a-blind-eye-to-the-theft-of-billions-of-pounds-of-public-money
    • pafpcg
    • By pafpcg 3rd Aug 19, 1:16 PM
    • 406 Posts
    • 375 Thanks
    pafpcg
    • #3
    • 3rd Aug 19, 1:16 PM
    • #3
    • 3rd Aug 19, 1:16 PM
    Oh, drat!

    I couldn't login yesterday (2nd Aug) to withdraw an expected dividend payment. I sent an email but have had no response.

    I guess I'm now an unsecured creditor for the 200 dividend and locked-out from the three investment trust holdings I had with them as nominees.
    • jamei305
    • By jamei305 4th Aug 19, 12:35 PM
    • 461 Posts
    • 570 Thanks
    jamei305
    • #4
    • 4th Aug 19, 12:35 PM
    • #4
    • 4th Aug 19, 12:35 PM
    Now mentioned in ThisisMoney: https://www.thisismoney.co.uk/money/investing/article-7317981/STOCK-WATCH-50-50-bet-HSBC-share-buyback-lose-lose.html


    No doubt more mainstream sources will cover it tomorrow.
    • Toki
    • By Toki 4th Aug 19, 6:47 PM
    • 262 Posts
    • 113 Thanks
    Toki
    • #5
    • 4th Aug 19, 6:47 PM
    • #5
    • 4th Aug 19, 6:47 PM
    Am I right in saying the first 50k in an ISA is protected by the FSCS? Anyone been through similar with Beaufort Securities? What happens from here on?

    Thanks in advance.
    • masonic
    • By masonic 4th Aug 19, 6:53 PM
    • 12,364 Posts
    • 9,956 Thanks
    masonic
    • #6
    • 4th Aug 19, 6:53 PM
    • #6
    • 4th Aug 19, 6:53 PM
    It would appear I've dodged another bullet! Left them soon after they rebranded SVS-XO and hiked their fees.

    Am I right in saying the first 50k in an ISA is protected by the FSCS? Anyone been through similar with Beaufort Securities? What happens from here on?
    Originally posted by Toki
    The first 50k85k, whether in an ISA or not, is covered by the FSCS, though I doubt it will come to that. No reason to think at this stage that their clients' investments have not been ringfenced. Most likely another firm will take on these accounts.

    I guess I'm now an unsecured creditor for the 200 dividend and locked-out from the three investment trust holdings I had with them as nominees.
    Originally posted by pafpcg
    You won't be an unsecured creditor unless there has been fraudulent activity going on behind the scene. Cash held on the platform should be ringfenced also.
    Last edited by masonic; 04-08-2019 at 7:06 PM.
    • Toki
    • By Toki 4th Aug 19, 6:58 PM
    • 262 Posts
    • 113 Thanks
    Toki
    • #7
    • 4th Aug 19, 6:58 PM
    • #7
    • 4th Aug 19, 6:58 PM
    The first 50k, whether in an ISA or not, is covered by the FSCS, though I doubt it will come to that. No reason to think at this stage that their clients' investments have not been ringfenced. Most likely another firm will take on these accounts.


    You won't be an unsecured creditor unless there has been fraudulent activity going on behind the scene. Cash held on the platform should be ringfenced also.
    Originally posted by masonic
    Thanks. Assuming the worst, I have individual shares held, is this covered by the FSCS also?
    • masonic
    • By masonic 4th Aug 19, 7:05 PM
    • 12,364 Posts
    • 9,956 Thanks
    masonic
    • #8
    • 4th Aug 19, 7:05 PM
    • #8
    • 4th Aug 19, 7:05 PM
    Thanks. Assuming the worst, I have individual shares held, is this covered by the FSCS also?
    Originally posted by Toki
    I can understand why you might think you would not be covered. FSCS cover does not apply to losses within individual shares, ITs and ETFs. However, this situation is not one in which your investments have lost money, it is one in which your FCA authorised investment firm cannot meet its obligations to you, so regardless of what you have invested in you have coverage for the value of your investments up to the 85k limit (increased as of April this year).
    • Alexland
    • By Alexland 4th Aug 19, 7:06 PM
    • 5,766 Posts
    • 5,032 Thanks
    Alexland
    • #9
    • 4th Aug 19, 7:06 PM
    • #9
    • 4th Aug 19, 7:06 PM
    The first 50k, whether in an ISA or not, is covered by the FSCS.
    Originally posted by masonic
    Surely that would now be 85k for failures occuring after 1st April 19?

    https://www.fscs.org.uk/what-we-cover/investments/
    • masonic
    • By masonic 4th Aug 19, 7:09 PM
    • 12,364 Posts
    • 9,956 Thanks
    masonic
    Surely that would now be 85k for failures occuring after 1st April 19?

    https://www.fscs.org.uk/what-we-cover/investments/
    Originally posted by Alexland
    It would, and your post crossed with my edit when I realised just that
    • Toki
    • By Toki 4th Aug 19, 7:10 PM
    • 262 Posts
    • 113 Thanks
    Toki
    I can understand why you might think you would not be covered. FSCS cover does not apply to losses within individual shares, ITs and ETFs. However, this situation is not one in which your investments have lost money, it is one in which your FCA authorised investment firm cannot meet its obligations to you, so regardless of what you have invested in you have coverage for the value of your investments up to the 85k limit (increased as of April this year).
    Originally posted by masonic
    Thank you again. Appreciate your help I should have said that I am DIY (no advice from SVS of Financial Advisor) and hold in SVSXO. Total around 25k in individual shares, Vodafone, Tesco etc.

    Hopefully you are right and will find out more tomorrow. Noted Alexland, think you are right. I was reading an old post which stated 50k.
    • masonic
    • By masonic 4th Aug 19, 7:16 PM
    • 12,364 Posts
    • 9,956 Thanks
    masonic
    Thank you again. Appreciate your help I should have said that I am DIY (no advice from SVS of Financial Advisor) and hold in SVSXO. Total around 25k in individual shares, Vodafone, Tesco etc.

    Hopefully you are right and will find out more tomorrow. Noted Alexland, think you are right. I was reading an old post which stated 50k.
    Originally posted by Toki
    There is no need for there to have been any advice. While the advice route is one way to FSCS compensation (when you receive unsuitable advice and you suffer investment losses as a result), you can also claim when a firm goes belly up holding your investments if it cannot return those investments or repay you their current market price. Either way, this is an inconvenience, but your capital is safe.
    • Alexland
    • By Alexland 4th Aug 19, 7:19 PM
    • 5,766 Posts
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    Alexland
    I don't claim to know much about SVSXO but I understand they were reasonably respectable so it just goes to show how careful and selective you should be when choosing who gets your business.
    • Toki
    • By Toki 4th Aug 19, 7:25 PM
    • 262 Posts
    • 113 Thanks
    Toki
    There is no need for there to have been any advice. While the advice route is one way to FSCS compensation (when you receive unsuitable advice and you suffer investment losses as a result), you can also claim when a firm goes belly up holding your investments if it cannot return those investments or repay you their current market price. Either way, this is an inconvenience, but your capital is safe.
    Originally posted by masonic
    Thanks for clearing up. I must have misread dunstonh and your own post in the thread below in my panic around individual shares. I'll sleep easier now.

    https://forums.moneysavingexpert.com/showthread.php?t=5933769&highlight=beaufort
    • masonic
    • By masonic 4th Aug 19, 7:33 PM
    • 12,364 Posts
    • 9,956 Thanks
    masonic
    I don't claim to know much about SVSXO but I understand they were reasonably respectable so it just goes to show how careful and selective you should be when choosing who gets your business.
    Originally posted by Alexland
    They were considered respectable and came fairly well recommended here, some years ago. I found nothing untoward when I checked them out in 2013 and subsequently opened an account. Other than a rather annoying practice of occasionally phoning me and trying to convince me to sign up for a share tipping service, they offered a great service. I ended up closing my account in 2017, but had no issues with that or any other aspect of their service.

    I'm not sure what steps could have been taken to avoid being caught up in this, other than sticking to the biggest 3 or 4 providers.
    • masonic
    • By masonic 4th Aug 19, 7:44 PM
    • 12,364 Posts
    • 9,956 Thanks
    masonic
    Thanks for clearing up. I must have misread dunstonh and your own post in the thread below in my panic around individual shares. I'll sleep easier now.

    https://forums.moneysavingexpert.com/showthread.php?t=5933769&highlight=beaufort
    Originally posted by Toki
    The information on the FSCS website at that time somewhat muddied the waters. The scenario in which your nominee runs off with your investments is still unprecedented as far as I'm aware. Here is the new wording that was added after the discussion in that thread:

    "If a firm fails holding client money or assets in connection with a type of regulated activity that FSCS can cover, we can compensate if there is a shortfall in your client money/assets."
    https://www.fscs.org.uk/what-we-cover/investments/
    • Alexland
    • By Alexland 4th Aug 19, 7:47 PM
    • 5,766 Posts
    • 5,032 Thanks
    Alexland
    I'm not sure what steps could have been taken to avoid being caught up in this, other than sticking to the biggest 3 or 4 providers.
    Originally posted by masonic
    Hopefully they will have been respectable enough to have correctly segregated client assets so nobody suffers actual loss regardless of account valuation.

    Still it does make you think - at a time when I am in the process of consolidating my two SIPPs together as I concluded that maybe I take the risk of failure in reputable platforms too seriously...

    Alex
    • masonic
    • By masonic 4th Aug 19, 8:11 PM
    • 12,364 Posts
    • 9,956 Thanks
    masonic
    Hopefully they will have been respectable enough to have correctly segregated client assets so nobody suffers actual loss regardless of account valuation.

    Still it does make you think - at a time when I am in the process of consolidating my two SIPPs together as I concluded that maybe I take the risk of failure in reputable platforms too seriously...
    Originally posted by Alexland
    It certainly gives pause for thought. This will no doubt have an impact on other small firms, rightly or wrongly.

    Here's hoping for an announcement tomorrow that the FCA has stepped in and appointed administrators, who will execute the firm's wind-down plan.
    • Hattie625
    • By Hattie625 4th Aug 19, 8:28 PM
    • 892 Posts
    • 776 Thanks
    Hattie625
    I have a stocks and shares ISA with Jarvis Investment Management (XO online). Current value is about 89,000. I understand that Jarvis is a similar firm to the one under discussion on this thread, It's very difficult to spread investments around various platforms to keep the value under 85,000. I know that investments are supposed to be ring-fenced but am concerned about the risk of internal mismanagement at the platform.
    • masonic
    • By masonic 4th Aug 19, 8:40 PM
    • 12,364 Posts
    • 9,956 Thanks
    masonic
    I have a stocks and shares ISA with Jarvis Investment Management (XO online). Current value is about 89,000. I understand that Jarvis is a similar firm to the one under discussion on this thread, It's very difficult to spread investments around various platforms to keep the value under 85,000. I know that investments are supposed to be ring-fenced but am concerned about the risk of internal mismanagement at the platform.
    Originally posted by Hattie625
    It's quite a dilemma. You have 89k safely looked after by a company who is still in business (at least for the time being). Had your concerns led you to split your ISA, you might have held half with XO and half with SVS. The more platforms you spread your money around, the more chance you'll experience a platform go insolvent.
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