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

Digital Assets

TRON approves Wintermute to mint, burn USDD stablecoin

TRON Reserve DAO has welcomed crypto market-making giant Wintermute as the ninth member and whitelisted institution to mint Tron network’s stablecoin, Decentralized USD (USDD).

Metaverse Gaming NFT

Nas Academy and Invisible College introduce innovative model for Web3 education

Singapore-based online learning platform, Nas Academy is joining forces with Invisible College to teach people everything they need to know about the Web3.

Digital Assets

Top exec at BitMEX pled guilty US Bank Act violations, pays $150K fine

BitMEX’s head of business development, Gregory Dwyer pled guilty to violating the US Bank Secrecy Act (BSA) and allowing customers to use the platform to circumvent the federal anti-money laundering rules.

Retail FX

CySEC slaps €150,000 fine on FXBFI, operator of 101investing brand

The Cyprus Securities and Exchange Commission (CySEC) today announced that it has reached a settlement with FXBFI Broker Financial Invest Ltd, trading as 101investing, ordering the firm to pay €150,000 for violating the Investment Services and Activities and Regulated Markets Law.

Retail FX

X Open Hub expands multi-asset offering with new cryptocurrencies and indices

X Open Hub, a multi-asset liquidity provider, announced today that it has extended its offering with inclusion of 30 new cryptocurrencies and two emerging market indices.

Retail FX

Interactive Brokers now offers 24/7 access to crypto trading

Interactive Brokers Group, Inc. (NASDAQ: IBKR) has widened access to cryptocurrency trading for its clients. Specifically, the discount broker extended trading hours for its cryptocurrency products to be traded 24/7, including on the weekends.

Inside View

Natural Language Generation for Multi-Language Social Media Strategies 

Natural Language Generation (NLG) is a crucial growth area in the digital landscape, with the unique potential to be used across multiple industries.

Market News, Technology

The B2Core Android App is Now Available For Download

The first version of the B2Core Android app is available for download, and it has many beneficial features for users.

Digital Assets

XBO taps custodian Fireblocks ahead of crypto exchange’s launch

XBO.com has integrated with digital asset and crypto technology platform Fireblocks ahead of the crypto exchange’s upcoming launch.