FSCS opens up claims service for SVS Securities’ clients willing to make further claims
The UK Financial Services Compensation Scheme would like to begin looking at other issues that have arisen following the failure of SVS.
The UK Financial Services Compensation Scheme (FSCS) today provided an update for the clients of SVS Securities.
FSCS says that, from today, former clients of SVS can begin to access their money and assets. They can do so via the new nominated broker, ITI Capital Ltd.
As FinanceFeeds has reported, SVS clients’ money and assets transferred from SVS to ITI in June 2020. There then followed a six-week period which ITI has used to set up clients’ new accounts in its systems. Clients have now been provided with login details to complete the online onboarding process with ITI, following which they can begin to access their assets immediately.
ITI will contact clients individually with specific instructions on how to register for an account with them in due course. SVS clients are advised not to contact ITI until they are instructed to so.
Over the past few months, the JSAs and their team at Leonard Curtis have been working closely with ITI to ensure a smooth transition for customers.
Under the terms of the distribution plan, approved by court order on 7 May 2020, FSCS is committed to meeting the costs of the Special Administration on behalf of all eligible claimants up to £85,000. FSCS will do so by direct arrangement with the JSAs.
This means that the vast majority of clients will get their money and assets back in full via ITI, with no deduction from clients’ money or assets to cover the costs of the Special Administration.
FSCS would like to begin looking at other issues that have arisen following the failure of SVS. The Scheme has opened up its online claims service for those clients who wish to make further claims in respect of SVS (other than for the simple return of money and assets).
This is likely to apply to clients who feel that having their client assets and client money returned is not going to address the losses they’ve suffered, and who consider that SVS is to blame for these additional losses. FSCS cannot compensate clients whose losses arise from an inability to sell assets or settle transactions during the Special Administration. The Scheme also cannot compensate clients for poor investment performance alone.