Liquidators apply to cancel SVS Securities’ FCA license

The application was heard on 16 March 2023. After the court approval, the liquidators now have permission to move SVS from special administration to dissolution. The special administration has also applied to cancel the company’s FCA registration.

“This final progress report deals with how the Administrators brought the Special Administration to an end, including the exit route from the Special Administration and the outcome for Clients and Creditors. The Administrators have filed a copy of this final progress report with the Registrar of Companies, together with the requisite notice. The Special Administration will cease to have effect when the Registrar of Companies registers these documents. The Company will be dissolved three months after that date.,” the statement reads.

The special administration proposed to conclude the process of client money distribution in early 2023. Liquidators arranged transfers for 99% of the company’s clients to financial advice and investment services company ITI Capital, which had bought the vast majority of clients book. This action typically allows clients to avoid paying exit fees on their transferred funds.

A very small number of clients, however, were not eligible to be transferred to other platforms. Leonard Curtis contacted these clients separately regarding options available for the return of their custody funds, which have been beyond reach for almost two years.

In addition, less than 1 percent of SVS clients are not entitled to recover their losses in full because their investment limit did not meet FSCS’ conditions for compensation. These are a few corporate clients and one individual trader whose losses exceed the lifeboat scheme’s limit of £85,000 per claimant.

Earlier in 2022, the special administration proposed to conclude the process of client money distribution at a certain point, rather than incurring additional costs in continuing to hold a few remaining assets for a prolonged period.

Moreover, administrators offered to sell unclaimed client assets from that final date and transfer the proceeds to SVS’ bank accounts for the benefit of its creditors. As such, those who have not sought compensation will instead be treated as unsecured creditors against SVS, though it is not guaranteed that late filings will be considered.

SVS Securities was put into special administration back in August 2018 after the FCA said it promoted high-risk bonds to retail investors and could not explain how it valued illiquid assets.

In addition, the regulator said SVS had questionable commission arrangements without apparent regard for the investment needs of customers, resulting in high fees and charges, which had negatively impacted clients.

Former clients of SVS Securities had ActivTrades plc UK and ITI Capital as two options available to them to access their money.