Administrators of Reyker Securities confirm first interim distribution to be paid in August

Maria Nikolova

Clients eligible for FSCS compensation will receive the full 85p in the £.

The joint special administrators of Reyker Securities have published an update for the company’s clients and creditors.

Thee administrators confirm that a first interim distribution of client money will be paid during August 2020 to all clients who hold a Client Money balance with Reyker and have submitted a Client Money Instruction Form by 17.00 hours (GMT) on August 7, 2020.

The first interim distribution will be paid to all participating clients in the sum of 85p in the £. Clients eligible for Financial Services Compensation Scheme (FSCS) compensation will receive the full 85p in the £, however, for FSCS ineligible or potentially ineligible Clients, the JSAs need to maintain a reserve for their share of the costs of the special administration which means that the amount they will actually receive will be 80p per £.

Clients eligible for FSCS compensation, which is more than 98% of Reyker’s clients, are still expected to receive 100% of their client money in due course.

A letter has been issued to all clients with Client Money balances (dated 10 July 2020) requesting clients to log on to the Portal at www.reykerportal.com (which has been further developed for the purpose of the Client Money distribution) and submit a Client Money Instruction Form by 17.00 hours (GMT) on 7 August 2020.

Those clients who submit a Client Money Instruction Form after this time will not be able to participate in the first interim distribution of Client Money and their share of Client Money will be safeguarded under the JSAs’ control until such time that either a second interim or a final distribution is declared.

Clients are reminded that:

  • Clients with Client Assets with a total value of less than £85,000 (as valued at 8 October 2019) are automatically treated by the FSCS as if they have submitted a claim for compensation to the FSCS on account of it exercising its power under COMP 3.2.1A of the FCA Handbook. This decision was made by the FSCS with a view to streamlining the process by which eligible Clients may receive compensation and, where possible, ensuring Client Assets are transferred whole; and
  • Clients with Client Assets with a total value of equal to or greater than £85,000 (as valued at 8 October 2019) 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 (if not already done so).

Reyker Securities entered administration in October 2019.

Read this next

Institutional FX

Euronext reports double-digit growth in FX volume

Pan-European exchange, Euronext has reported a 10 percent rebound in the average daily volume on its spot foreign exchange market. The ADV figure stood at $19.6 billion in January 2022, which is up from December’s $18 billion.

Digital Assets

Voyager subpoenas FTX’s inner circle over Alameda loan

Bankrupt crypto broker Voyager Digital, represented by law firm Kirkland & Ellis, is seeking court approval to subpoena Sam Bankman-Fried’s inner circle, as well as Alameda Research’s former executives.

Retail FX

AvaTrade seals sponsorship deal with F1’s Aston Martin team

Dublin-based forex broker AvaTrade today announced that it has concluded a sponsorship deal with Formula One’s Aston Martin Cognizant team that entails sponsorship rights and other marketing benefits.

Executive Moves

M4Markets onboards Invaxa CEO Marios Antoniou as COO

Seychelles-regulated brokerage firm M4Markets has appointed Marios Antoniou, who has a colorful career within the foreign exchange industry, in the capacity of its Chief Operations Officer.

Digital Assets

GK8 now allows clients to control their digital assets as they would their fiat

“As the institutional market is increasingly turning to self custody, our policy engine empowers them to automate transactions, approvals, and even crucial workflows, while providing the highest degree of security, consistency, governance and control.”

Digital Assets

Retail CBDCs in the UK: “Welcomed” by CryptoUK and R3, but “Dystopian” for ETC Group

“At this stage, we judge it likely that the digital pound will be needed in the future. It is too early to decide whether to introduce the digital pound, but we are convinced preparatory work is justified”, said the BoE and HM Treasury.

Institutional FX

Centroid taps Iress API to provide retail brokers with real-time market data

“It has always been a challenge to have an efficient, elegant solution for market data and order execution for retail brokers, but with Iress we have found absolutely the right partner to add to our client offering.”

Digital Assets

Ramp launches FCA-approved off-ramp product, onboards Brave, Trust Wallet, Ledger

“To obtain and maintain our FCA registration, we must meet and operate within their strict anti-money laundering and counter-terrorist financing standards. This is a huge achievement for us, as compliance is a cornerstone of our business and what we stand for.”

Institutional FX

State Street launches FIX API for Fund Connect ETF platform

“Expanding from proprietary APIs to the FIX industry standard will bring us closer to our goal of 100% digital interactions. This is another example of innovations we’ve brought to our operating model as we celebrate 30 years of servicing ETFs since the launch of SPY.”

<