Reyker Securities administrators urge clients to submit claims

The special administrators of Reyker Securities have published an update to clients, informing them that they are now required to take action.

The administrators have set a bar date of 17.00 hours on April 7, 2020, being the deadline by which clients must submit a claim to their Client Assets. Clients must submit a claim using the Client Claim Portal which is now live and can be accessed at https://reykerportal.com.

For all clients who do not submit a claim via the Portal by the Bar Date, the administrators intend to effect the transfer of assets to the purchaser based on the company’s records in accordance with the regulations. This means that any client who does not submit a claim will lose the opportunity to dispute any of the holdings shown on the portal.

An exchange of contracts is yet to take place for the sale of the company’s business and assets, however, the proposed purchaser and its legal team remain engaged in the process and the administrators continue to accommodate their information requests as part of contract negotiations.

Once an exchange of contracts has taken place, the administrators will be preparing the Distribution Plan (a statutory document required to facilitate the transfer of Custody Assets) in conjunction with their solicitors and seeking the requisite approvals from the Clients’ and Creditors’ committee and the court. Any transfer of Client Assets cannot be implemented sooner than July 7, 2020.

As previously reported, the costs of pursuing Objective 1 of the special administration (i.e. the return of Client Assets) are paid from Client Assets and, therefore, Clients who do not receive FSCS compensation may receive a shortfall in their Client Assets following a deduction of their share of the costs.

Accordingly, the FSCS has confirmed that it has applied its power under COMP 3.2.1A of the FCA Handbook and will treat all Clients with Client Assets with a total value of less than £85,000 as at October 8, 2019 as if they have claimed compensation.

If the total value of one’s Client Assets is less then £85,000 as at October 8, 2019, this client will automatically be treated as having submitted a claim for compensation from the FSCS and this client does not need to take any further action in this regard.

Clients who have Client Assets with a total value as at October 8, 2019 either equal to or greater than £85,000 will not be treated as having automatically claimed compensation from the FSCS. Such Clients are asked as part of the online claims process to confirm whether they wish to submit a claim for FSCS compensation or not.

The Portal automatically determines which of the above categories a client is deemed to fall into as part of the ‘Declaration’ and claim submission process and clients will only see options that are relevant to them.

As FinanceFeeds reported, Reyker Securities entered administration in October 2019.