Administrators of Reyker Securities prepare to pay interim distribution of client money
The administrators have decided to undertake a distribution of client money, which is not subject to Court consent and availability, aiming to expedite the return of client money held within the Client Money Pool.
Smith & Williamson, the joint special administrators (JSAs) of Reyker Securities, are planning to pay an interim distribution to clients of the company which entered administration in October 2019.
The latest update provided by the joint special administrators (JSAs) says that, in light of the widespread financial difficulties brought about by the Covid-19 pandemic and the preferences of the largest intermediary providers, the JSAs have decided to undertake a distribution of client money, which is not subject to Court consent and availability, with a view to expediting the return of client money held within the Client Money Pool.
The JSAs are preparing to pay an ‘interim’ distribution of client money as soon as possible and each client with a client money balance will be written to over the coming weeks. 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.
The JSAs still expect to return all client money to Financial Services Compensation Scheme (FSCS) eligible clients and all client money, less their share of the costs, to all other clients who are either not eligible or chose not to make a claim to the FSCS in due course.
In order to participate in the first interim distribution of client money, clients must have submitted their claim to client assets held as at October 8, 2019 through the Portal. Clients that have not yet submitted their claim on the Portal (or otherwise) are strongly encouraged to do so at the earliest opportunity. If this is not completed, clients will not lose their entitlement to client assets, however, the distribution of client money will be delayed.
FSCS will treat all clients with client assets with a total value of less than £85,000 as at October 8, 2019 as if they have claimed compensation. This means:
All clients with client assets totalling less then £85,000 as at October 8, 2019 have automatically been treated as having submitted a claim for compensation from the FSCS and they do not need to take any further action in this regard;
Clients who have client assets with a value equal to or greater than £85,000 as at October 8, 2019 will not be treated as having automatically claimed compensation from the FSCS and, therefore, were required to indicate through the Portal as to whether they wish to submit a claim for FSCS compensation or not.