Administrators of Reyker Securities ask clients to submit claims no later than 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 clientservices@reyker .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.