Court to hear application concerning client money held by SVS Securities
By that application, SVS and the Administrators seek confirmation from the Court that SVS can transfer the client money pool to the Nominated Broker under certain conditions.
Clients who have a claim against the client money pool held by SVS Securities are advised to note that at the Court hearing listed for May 7, 2020 an application will be heard concerning client money held by SVS.
By that application, SVS and the Administrators seek confirmation from the Court that SVS can transfer the client money pool to the Nominated Broker without the consent of each of the clients who are entitled to share in it and they also seek directions: (i) which will facilitate the efficient resolution of any disputes as to the existence or extent of clients’ client money entitlements; and (ii) protecting SVS and the Administrators from any claims which might be made by someone who established their client money entitlement only after the transfer has been made in circumstances where the Administrators are not aware of that entitlement at the date of the transfer.
If the application is successful, for the vast majority of clients, their share of the client money pool will be transferred to the Nominated Broker.
The Court hearing is currently expected to be held by videoconference in the High Court of Justice, Business and Property Courts, Insolvency and Companies List due to the ongoing COVID-19 situation. Clients are not required to attend the Court hearing on May 7, 2020, but may do so if they wish.
Let’s recall that, as per the report issued by the Administrators in February 2020, have secured client money of approximately £24.9 million, in full, from across 20 pre-appointment bank accounts.
The Administrators initially estimated that SVS Securities had approximately 21,000 clients, however, after conducting further analysis on the client and account base that is held across three different IT platforms, the Administrators identified a number of clients holding multiple accounts with the company. This further analysis has identified approximately 19,200 unique clients. The custody assets and client money are held by a mixture of execution only, discretionary and FX clients. As at August 5, 2019, SVS’s account base comprised 14,855 equity accounts (including 773 discretionary accounts), 10 prime broker accounts and 6,547 FX accounts.
The final terms of the Distribution Plan were approved by the Creditors’ Committee on April 21, 2020.
