FCA confirms Reyker Securities’s entry into special administration
The Court has appointed Mark Ford, Adam Stephens and Henry Shinners of Smith & Williamson LLP as Joint Special Administrators of Reyker Securities Plc.
Shortly after the UK Financial Conduct Authority (FCA) imposed certain regulatory requirements on Reyker Securities PLC, the regulator has confirmed that the investment firm has entered administration.
On October 8, 2019, the Court appointed Mark Ford, Adam Stephens and Henry Shinners of Smith & Williamson LLP as Joint Special Administrators of Reyker Securities, following an application by the Directors of the firm.
Reyker’s Directors had been trying to sell the business, however they were unable to complete this sale. As a result of the firm’s financial difficulties the Directors concluded that it was cash flow insolvent, and in discussion with the FCA, took steps to place the firm into Special Administration.
The Special Administrators will carry out an assessment of the client money and custody assets held by the firm to confirm the current position. Following the assessment, the Special Administrators will work to return as much client money and custody assets to customers as possible.
The Special Administrators will write to customers to inform them of their proposals for the Special Administration within 8 weeks of appointment. This will include the process of how one can make a claim.
The Special Administrators will work with the Financial Services Compensation Scheme (FSCS) to determine the position and will provide further updates. For eligible clients, the FSCS will cover custody assets and client money shortfalls up to £85,000 including the costs associated with their distribution back to clients.
Customers can find more information about how they will be affected via:
- Website: https://www.reyker.com/
- Client Helpline: 0207 397 2586
- Email: [email protected]
Reyker is still authorised by the FCA and remains subject to supervisory oversight and the FCA’s rules. The Special Administrators are officers of the Court and need to comply with all insolvency law.
Importantly, following their appointment by the Court, the Special Administrators requested the lifting of the regulatory requirements imposed by the FCA on Reyker. In order to allow the Special Administrators to carry out their duties under the ultimate oversight of the Court, the FCA has agreed to lift the requirements. This will allow for the eventual return of client money and custody assets to clients, but it is important to note that Reyker will not be restarting its business.
