Administrators of Reyker Securities submit Distribution Plan to Court

Maria Nikolova

The Distribution Plan has been listed to be heard by the Court on October 16, 2020.

The joint special administrators (JSAs) of Reyker Securities have provided an update for clients of the firm.

In order to return Custody Assets, the JSAs have to prepare and submit a Distribution Plan for approval by the Creditors’ Committee and the Court. The terms of the Distribution Plan were approved by the Creditors’ Committee on July 31, 2020 and the Distribution Plan was submitted to Court on August 6, 2020.

The Distribution Plan has been listed to be heard by the Court on October 16, 2020. No action is required by Clients prior to the Court hearing in respect of their Custody Assets.

If the Distribution Plan is approved, Clients will receive confirmation of this by post and be issued with a Client Assets Return Statement, which will detail all Custody Assets to be returned.

The distribution plan deals with the return of Custody Assets (being electronic and paper-based stocks and securities) and Corporate Action Assets (being dividends, interests, redemptions, etc. received in respect of Custody Assets following 8 October 2019) and not already dealt with. The distribution plan does not apply to Client Money held within the Client Money Pool (which crystallised on 8 October 2019 and is being returned by way of a separate distribution of Client Money).

The return of Client Money from the Client Money Pool (i.e. cash held as at 8 October 2019) does not form part of the Distribution Plan and the JSAs are seeking to return this cash to Clients by way of a Client Money distribution in accordance with the FCA’s Client Money Distribution and Transfer Rules.

The JSAs issued a letter to all Clients with a Client Money balance as at 8 October 2019 (dated 10 July 2020) confirming a first interim distribution of Client Money will be paid during August 2020 to all Clients who hold a Client Money balance with the Company and have submitted a Client Money Instruction Form by 17.00 hours (GMT) on 7 August 2020.

The deadline to participate in the first interim distribution of Client Money has now passed.

The JSAs are currently processing the instructions received from more than 4,300 clients and investment managers (on behalf of more than 3,200 clients) and they are working towards paying all distributions to participating clients by the end of August 2020.

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