FSCS intends to open to claims for further losses against SVS Securities

Maria Nikolova

The Compensation Scheme is aware that the return of money and assets may not satisfy those SVS customers who might have a claim for further losses against the firm.

The UK Financial Services Compensation Scheme (FSCS) has provided an update to customers of SVS Securities, as, apparently, the process for returning money is not satisfactory to everyone affected.

In its latest update, the Scheme says it is aware that the return of money and assets may not satisfy those SVS customers who might have a claim for further losses against the firm. Customers who believe SVS has caused additional losses may wish to make a claim to FSCS in relation to those losses, but the Scheme is not currently open to these claims, as it wants to make progress on reuniting customers with their money and assets.

However, FSCS intends to open to such claims, and it will announce this on its website when it is ready.

By agreeing to FSCS compensation for the costs of returning money and assets via the SVS portal, customers will be assigning their right to claim against SVS to FSCS in relation to that claim. Customers will not lose the right to make further claims to FSCS in relation to additional losses.

Although separate from any claim a client may have in relation to the costs of returning money and assets, FSCS cannot pay more than £85,000 in total per person against SVS.

The Scheme notes that it can only consider claims when it is satisfied a customer has first exhausted any right to claim against any connected firms that are still trading. It is aware that FCA authorised advisers may have recommended investments to some clients of SVS.

If an FCA authorised adviser that’s still trading advised you to invest through SVS, you need to complain to them. If your adviser rejects your complaint, you can take your complaint to the Financial Ombudsman Service (FOS).

If an FCA authorised adviser that’s now not trading advised you to invest through SVS, you’ll be able to submit a claim to FSCS against them.

The Joint Special Administrators have set the custody assets bar date and the client money bar date will occur simultaneously for 17.00 (GMT) on January 10, 2020. If a certain client fails to submit a claim by the bar date stated above, it is not guaranteed that this client’s claim will be taken into account when a distribution or transfer is effected and this client will lose any right to dispute a claim per the records of the company. For any client who does not submit a claim via the Claims Portal by the bar date, the Administrators intend to effect the transfer of custody assets and/or client money to a regulated broker based on the company’s records.

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