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.

Read this next

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

Digital Assets

Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic

How This Californian Startup Is Revolutionizing Real Estate Investment through Ethereum-Based Tokenization.

Digital Assets

Sui Spikes in Weekly DEX Volume, Joins Top 10 of All Blockchains

March DEX volume on Sui stands at over $2.88B – up more than 49% from February – with decentralized exchange Cetus and wholesale liquidity layer DeepBook leading.

Digital Assets

Prisma Finance suffers $10 million crypto exploit, attack ongoing

Liquid staking protocol Prisma Finance fell victim to a security exploit on March 28, resulting in nearly $10 million in Prisma mkUSD and wrapped stETH being stolen by hackers.

Digital Assets

Masa and LayerZero: Bridging Blockchains for Data Sovereignty

Masa Network is poised to revolutionize the personal data landscape with its upcoming launch as a cross-chain platform, making it accessible on a variety of blockchains right from the start.

<