FSCS seeks to help eligible customers of Reyker Securities
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.
