FSCS seeks to help eligible customers of Reyker Securities

Maria Nikolova

At this stage, however, there is no need for customers to make a claim with the UK Financial Services Compensation Scheme.

The UK Financial Services Compensation Scheme (FSCS) is making plans to help eligible customers of Reyker Securities plc. As FinanceFeeds has reported, the Financial Conduct Authority (FCA) has confirmed that Reyker entered into special administration on October 8, 2019.

The Special Administrators of Smith & Williamson LLP will assess the client money and assets held by the firm. Following this, the Special Administrators will work to return as much client money and assets to customers as possible, as quickly as possible.

If the Special Administrators find that the firm does not hold enough client money or assets, FSCS says it will cover asset and client money shortfalls for eligible customers. This will include any distribution costs back to clients, up to FSCS’s compensation limit of £85,000.

At this stage, however, there is no need for customers to make a claim with FSCS.

Reyker Securities plc is a fund custodian that holds and safeguards cash and assets on behalf of its clients. Until recently, the directors of Reyker had been attempting to find a buyer for the business, but they failed to achieve a sale. Consequently, the directors of Reyker have decided to place the firm in Special Administration.

Although Reyker is in Special Administration, FSCS continues to accept claims for compensation against Merchant Capital Limited in relation to fees charged by Reyker, following the failure of Merchant Capital in 2013.

Customers are advised to subscribe at https://www.fscs.org.uk/failed-firms/reyker-securities/ to receive the latest updates.

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 is set to 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.

Read this next

Executive Moves

Finalto recruits Antony Parsons as head of liquidity

Finalto, the financial trading division of Gopher Investments, is making a broader push into the liquidity provision space, culminating in a new appointment focused on expanding the business into new markets.

Digital Assets

Huobi introduces Tether’s stablecoins pegged to euro, gold

Huobi, the world’s sixth-largest crypto exchange by trading volume, is set to introduce for its clients two stablecoins representing ownership of physical gold and Euro-pegged tokens.

Retail FX

Saxo Bank reports lackluster volumes for November; FX up 40% YoY

FX trading volumes through Saxo Bank’s platforms improved slightly in November, extending its volatile curve as investors continued to weigh central banks’ policy against concerns over a global economic slowdown.

Executive Moves

CMC Markets taps Finalto’s Julia Free to head UK compliance

CMC Markets PLC (LSE:CMCX) has onboarded Julia Free as its newest head of UK compliance as part of a broader organizational reshuffling at the UK’s biggest spread better.

Digital Assets

Ankr successfully patches hack, will reimburse victims and take actions to prevent further attacks

DeFi protocol Ankr plans to reimburse its affected users after a hacker managed to exploit a bug in its code that allowed for unlimited minting of its liquid staking token.

Industry News

ASIC cancels/suspends AFS license of AFSL Group and Quantum Funds Management

ASIC canceled the AFS license of AFSL Group because it failed to lodge statements and audit reports and it did not maintain AFCA membership. The Australian regulator suspended Quantum because it does not have the required professional indemnity insurance coverage.

Executive Moves

BidX Markets hires Shaun French as Research Analyst – Multi Asset

“We believe with his background in the Financial Markets and being based in Dubai, he will be able to provide our clients with access to outstanding research, while also being in a great location to help support our international clients base which is growing at a rapid pace’’.

Institutional FX

Nasdaq migrates US options exchange to AWS with +10% performance in round-trip latency

Nasdaq has announced the successful migration of the core trading system of Nasdaq MRX – one of its six U.S. options exchanges – to Amazon Web Services (AWS).

Institutional FX

TraditionData launches oil swaps pricing data at a critical time in OTC oil traded markets

TraditionDATA has announced the release of a new proprietary Oil Swap Model (OSM) which brings further visibility into illiquid and opaque oil markets.

<