Reyker Securities administrators confirm offer for the company’s assets has been accepted
This is set to facilitate the transfer of all client assets to a regulated broker.
Smith & Williamson LLP, the Joint Special Administrators of Reyker Securities, have posted a notice providing information on their work to the clients and creditors of the firm which entered administration in October 2019.
The JSAs explains that good progress has been made in line with the anticipated timescales previously reported.
The administrators confirm that an offer for Reyker Securities’s business and assets has been accepted (subject to contract) which will facilitate the transfer of all client assets to a regulated broker.
The JSAs’ Reconciliation of client assets has been completed and no material client money discrepancies have been identified. The JSAs’ reconciliation of custody assets identified a number of inconsistencies between the computer records, CASS best practice and the physical certificates held and work is ongoing to resolve these. The JSAs are advised by their independent expert that this should not result in a client account shortfall, but this remains a (small) possibility.
The bespoke online client portal is in its final stages of development and is anticipated to launch before the end of February 2020 once final testing has been completed. Once the client portal is ready, the JSAs will issue formal notice of a bar date, being the date by which clients must submit a claim in respect of their client money and custody assets. On present information, it is anticipated this will be sent before the end of February 2020.
Clients do not need to take any action at this time.
The administrators continue to liaise with the FCA and FSCS in respect of the progress of the Special Administration and in relation to potential claims that may arise from clients where there is any shortfall in assets returned to clients.
The administrators’ initial assessment is that the majority of clients will be eligible for cover from the FSCS compensation scheme. The JSAs intend to work with the FSCS so that any compensation due to eligible clients may be paid direct to the JSAs and at the same time as any transfer to the purchaser. This will, hopefully, mitigate the need for any eligible client to submit a direct claim to the FSCS themselves and should facilitate a transfer of each eligible clients’ assets in whole.