Assets and money of SVS Securities’ clients to transfer to ITI Capital
The Joint Special Administrators of SVS Securities have appointed ITI Capital Limited as the single regulated broker to whom the client assets and money will be transferred.
The Joint Special Administrators of SVS Securities have published information to clients of the company. As stated in previous communications, the Joint Special Administrators have concluded that the most appropriate strategy for the return of any client assets and client money is an orderly and coordinated transfer to a single regulated broker. The administrators announce that they have selected ITI Capital Limited as the single regulated broker.
The vast majority of SVS’s clients will become clients of ITI on June 11, 2020. The Client Statements made available on May 18, 2020 identified which of each client assets and/or client money are proposed to be transferred to ITI.
Following the completion of the transfer, the transfer agreement entered into between SVS, the Joint Special Administrators and ITI permits ITI a further period of up to 6 weeks from June 11, 2020 to finalise preparing its systems. This means that SVS’s clients are expected to have access to client money and client assets from mid-July 2020.
On or around June 11, 2020, two letters will be made available to clients. These letters will be sent by Leonard Curtis (a “goodbye” letter) and ITI (a “welcome” letter) respectively and each letter will contain different content. A full introduction to ITI and its services will be provided as part of these communications, together with further details on the transfer and the process for registering an account with ITI.
The client assets and client money of all SVS clients will transfer to ITI, except for:
- Clients owing outstanding amounts to SVS which have not been paid prior to the transfer date June 11, 2020;
- Clients not eligible for FSCS compensation who have not paid the costs attributable to their client assets and/or client money prior to the transfer date (11 June 2020);
- Any client subject to a freezing order or other sanctions restrictions;
- FX Elective Professional Clients.
Let’s note that, according to the latest update provided by the UK Financial Services Compensation Scheme (FSCS), the Scheme intends to be open to additional claims against SVS.
The body says it is aware that the client statements issued by the joint special administrators on May 15, 2020 have revalued certain corporate bonds held by SVS on behalf of customers. Some have been given a nil value, others have been written down significantly.
FSCS understands that customers who have invested in these bonds may wish to make a further claim to FSCS if they consider that SVS is to blame for these additional losses. The Scheme will treat such claims separately from the costs of the Special Administration, which FSCS will also be meeting on behalf of eligible claimants.
At the moment, FSCS is not open to these additional claims because the priority is the special administration process, where FSCS is focusing on assisting the JSAs in a successful transfer to the nominated broker. However, the Scheme intends to be open to these claims as soon as it can.
FSCS can pay compensation of up to £85,000 in respect of the total liabilities that might be owed to customers by SVS.
As FinanceFeeds reported, the final terms of the Distribution Plan and the Client Money order were approved by the Court on May 7, 2020. The approval is an important milestone in returning Client Assets and Client Money.