SVS Securities administrators announce results of first meeting of clients and creditors
The Joint Special Administrators’ proposals were approved and a creditors’ committee was formed.
It has been a while since Julien Irving, Andrew Poxon and Alex Cadwallader of Leonard Curtis were appointed Joint Special Administrators of SVS Securities PLC. Today, the Joint Special Administrators published a report outlining the results of the initial meeting of clients and creditors of the company.
In brief, at the meeting, the Joint Special Administrators’ proposals were approved and a creditors’ committee was formed.
The proposals of the administrators include:
pursuing the objectives of the special administration, such as ensuring the return of client assets as soon as reasonably practicable, and either rescue the company or wind it up in the best interest of creditors.
that the administrators move funds realised on behalf of the company into bank accounts controlled by the administrators;
that client money and custody assets be returned to clients before any distribution to any other class of creditors being made;
that the administrators realise the remaining assets of SVS in pursuit of the objectives of the special administration;
that the administrators make distributions to the company’s secured, preferential and unsecured creditors as appropriate;
that the administrators continue to investigate and pursue any claims that an officeholder and/or the company may have against any parties concerned with the affairs of the company;
that, once the objectives of the special administration have been fulfilled, the administrators seek to conclude the case either: (i) by filing notices that the company no longer holds client assets and dissolving the company without any further recourse to the creditors or clients of the company; or (ii) put further proposals for a company voluntary arrangement.
Let’s recall that, following action taken by the UK Financial Conduct Authority to impose requirements on SVS stopping it from conducting regulated activities and restricting it from disposing of its own or its clients’ assets, the directors considered the viability and solvency of SVS. They obtained solvency advice and resolved to place the firm into Special Administration.
The UK Financial Services Compensation Scheme (FSCS) has stated that, should the Special Administrators find that the firm does not hold enough client money or assets, then FSCS will cover asset and client money shortfalls, including the costs associated with their distribution back to clients, for eligible customers up to our compensation limit of £85,000.
FSCS is working closely with the Special Administrators to determine the firm’s position in respect of client money and assets and will provide further updates. At this stage there is no need for customers to make a claim with FSCS.
