Administrators of Reyker Securities ask clients to submit claims no later than July 14, 2020

Maria Nikolova

All clients who have not yet submitted a claim are advised to do so by July 14, 2020.

The joint special administrators of Reyker Securities, which went into administration in October 2019, are urging clients who have not yet submitted their claims to do so within the next couple of weeks.

Clients who want to submit a claim to Client Money and/or Custody Assets are asked to do so no later than 14 July 2020.

For clients who do not submit a claim by the above date, the JSAs will rely on Reyker’s records when making the Distribution Plan in respect of Custody Assets and making the upcoming first interim distribution of Client Money and some clients may lose any right to dispute this.

For those who have already submitted a claim, no further action is required at present.

As previously reported, the costs of pursuing Objective 1 of the special administration (i.e. the return of Client Assets) are paid from Client Assets and, therefore, Clients who do not receive FSCS compensation may receive a shortfall in their Client Assets following a deduction of their share of the costs.

The JSAs have been liaising closely with the FSCS in order to streamline the process by which eligible Clients may receive compensation in order to mitigate the need for an eligible Client to submit a claim direct to the FSCS themselves and, where possible, to ensure Client Assets are returned whole.

Should you agree with your online statement(s), please confirm your agreement via the Portal in order to validly submit your claim. If you do not agree with any of the information held, please contact Client Services on 0800 048 9512 or, alternatively, at [email protected] .com.

The FSCS has confirmed that it will treat all Clients with Client Assets with a total value of less than £85,000 as at 8 October 2019 as if they have claimed compensation.

If the total value of a client’s assets is less than £85,000 as at October 8, 2019, the client will automatically be treated as having submitted a claim for compensation from the FSCS and this client does not need to take any further action in this regard (but this client still needs to submit their claim to Client Assets via the Portal). The JSAs are in the process of reviewing each Client’s eligibility jointly with the FSCS.

Clients who have Client Assets with a total value as at October 8, 2019 either equal to or greater than £85,000 will not be treated as having automatically claimed compensation from the FSCS. Such Clients are asked as part of the online claims process to confirm whether they wish to submit a claim for FSCS compensation or not.

The Portal automatically determines which of the above categories a client is deemed to fall into as part of the ‘Declaration’ and claim submission process and the clients will only see options that are relevant to them.

The FSCS can pay up to £85,000 per eligible Client for claims in respect of Reyker Securities plc (in special administration), including those in respect of their share of the Objective 1 costs.

Any eligible Client with Client Assets with a total value equal to or greater than £85,000, who does not pursue FSCS compensation via the Portal may have to meet their share of the Objective 1 costs upon the distribution or transfer of Client Assets and the JSAs may reserve sufficient Custody Assets or Client Money to cover those costs.

Let’s recall that, earlier this month, the JSAs said they were planning to pay an interim distribution to clients of the company. The distribution of client money will be paid in at least two tranches to clients as, at the time of the first ‘interim’ distribution, the JSAs will need to retain sufficient funds as a provision to settle the anticipated costs of the special administration and unforeseen client claims that may be forthcoming.

Read this next

Executive Moves

XS.com hires Ahmed Negm, a popular market analyst on CNBC, Sky News, Bloomberg’s Asharq

“Ahmed’s expertise and passion for understanding the intricacies of the financial markets will be invaluable as we continue to grow our client base and expand into new jurisdictions.”

Institutional FX

ATFX uses blockchain to help clients verify IBs and vice versa

ATFX said it has been working on the IB verification project for a few months.

Industry News

Research market in dire straits as SEC’s ‘no-action’ letter on MiFID II lapses in June – survey

“Of all the regulatory news that has hit the research market in the last few months, this is the one change that will fundamentally impact what fund managers can access and pay for in future.”

Executive Moves

Wombat appoints ex-abrdn Richard Charnock as UK platform turns to Europe

Launched in 2019, Wombat provides a dedicated mobile investing platform – available on both iOS and Android – offering users both range and choice.

Institutional FX

Broadridge integrates Point Focal’s pre and post-market reports

“Point Focal provides a unique lens on the market which will help add alpha to the trading process and these new insights will rapidly improve performance while mitigating execution risk and simplify trading.”

Technology

XCritical integrates with Brokeree Solutions, allowing its clients to launch copy trading 

The forex software provider – XCritical, has integrated Social Trading by Brokeree Solutions into their CRM system.

Industry News

HKEX partners with Saudi exchange for cross listings, ESG, Fintech

“The Kingdom of Saudi Arabia, and the broader Middle Eastern region, are one of the world’s most dynamic and exciting economic and innovation hubs and also home to some of the fastest growing investor groups in the world. Hong Kong and HKEX’s markets offer significant opportunities for international investors and corporates, including unrivalled connectivity to the Mainland Chinese markets through our unique Connect programmes. This agreement signals the beginning of even greater collaboration between our companies and our home markets, and we look forward to exploring many future areas of cooperation.”

Executive Moves

CMC Markets Connect relocates APAC team led by Peter Foster to Singapore

“Singapore is a vibrant city and is now undoubtedly seen as Asia’s leading financial hub. The decision to bolster the CMC Markets Connect team here will help us cement the company’s position as a leading provider of multi asset liquidity and comprehensive trading solutions across the region.”

Retail FX

Italian watchdog red flags Olympus Brokers, UnicoFX and Allfina Group

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.

<