SVS Securities administrators announce results of first meeting of clients and creditors

Maria Nikolova

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.

Read this next

Executive Moves

TopFX promotes Omar Al-Janabi to head of sales and business development

Prime brokerage firm TopFX has strengthened its Middle East operations with the promotion of Omar Al-Janabi, who is taking on an expanded role as global head of sales and business development.

Retail FX

Plus500 says 2022 revenue to be ‘significantly’ ahead of analysts’ estimates

Israeli-based, but London-stock market listed Plus500 said it expects annual revenue and earnings to be ahead of analysts’ estimates even as trading levels normalised from record volumes in the first quarter.

Digital Assets

Crypto derivatives giant BitMEX launches spot market

Crypto exchange BitMEX is looking to branch out of its singular focus on crypto derivatives with a suite of new product offerings. Although derivatives are to remain at the heart of BitMEX’s business, the popular platform will add spot crypto trading as it aims to aggressively grow their user base.

Uncategorized

PrimeXM reports mixed trading volumes for April

PrimeXM has reported weaker trading volumes for April 2022, in line with other institutional and retail platforms that saw the activity of their clients dropped compared to a month earlier.

Digital Assets

DLT Finance approved by BaFin to support brokerage and custody of digital assets

DLT Finance is already partnered with big names within the digital asset space, including Kraken, Bitstamp, B2C2, and Bittrex.

Institutional FX

LUKB taps vestr to launch actively managed products, AMCs

The partnership with vestr goes to show the growing importance of digitising the active investment management space.

Digital Assets

Jewel taps Tokeny to launch stablecoin-as-a-service solution on Polygon

Jewel aims to offer a stablecoin-as-a-service solution to other digital asset and financial institutions B2B, allowing those businesses to provide cheaper, easier and near real time payments with stablecoins issued and redeemable directly at the bank level at Jewel.

Industry News

SEC charges $410+ million Ponzi scheme with pre-IPO shares

We allege that the defendants deceived investors about the pre-IPO shares they held, how much they were charging in fees, and who was controlling the business—all while paying themselves more than $75 million.

Industry News

FNZ taps data analytics GIST to address ESG ratings bias

The allocation of capital is critical to driving the change required to transition to net-zero and building a more sustainable economy and society.

<