FSCS provides update to customers of SVS Securities
FSCS plans to meet the costs of the Special Administration on behalf of each eligible customer, up to £85,000.
Less than a week after the Joint Special Administrators (JSAs) of SVS Securities announced the launch of Claims Portal, the UK Financial Services Compensation Scheme (FSCS) has published an update on the matter.
The Scheme explains that it is hoped that the distribution plan (which will need to be agreed by the Creditors’ Committee and the Court) will enable customers’ holdings to transfer in whole to a new broker.
For this to happen, FSCS plans to meet the costs of the Special Administration on behalf of each eligible customer, up to £85,000. The body intends to pay the JSAs directly.
However, if a customer states that they do not want FSCS compensation when offered it in the portal, the JSAs will not be able to transfer the customer’s property to a new broker without deduction.
The Claims Portal will enable clients to view their client statement(s) showing their holdings of custody assets and/or client money as at 5 August 2019 per the records of SVS. Accordingly, the statements do not include dividends and bond coupons received after that date or reflect any mandatory corporate actions post 5 August 2019.
The Claims Portal contains guidance notes on how to submit one’s claim and what steps are necessary in the event that clients wish to dispute their holdings of custody assets and/or client money.
If a certain client fails to submit a claim by the bar date of January 10, 2020, 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.