SVS Securities’ administrators report progress on transfer of custody assets and client money
The Administrators have entered into a short period of exclusivity with a single regulated broker to progress the transfer of custody assets and client money to that broker.
The administrators say that they have entered into a short period of exclusivity with a single regulated broker to progress the transfer of custody assets and client money to that broker. The Administrators promise to provide clients with a further update, including the identity of the broker, as soon as they are able to do so in accordance with confidentiality restrictions.
The Administrators explain that, according to them, a transfer to a single broker is the quickest and most cost effective method of returning custody assets and client money to clients.
In order to transfer custody assets and client money to a regulated broker, the Administrators will have to prepare and circulate to clients a Distribution Plan and accompanying Explanatory Statement. These documents will outline, inter alia, how the Administrators propose to transfer custody assets, the costs of the transfer, to whom they will be transferred and how the Administrators are working with the FSCS to seek to meet those costs for eligible clients. The Distribution Plan must be approved by the Creditors’ Committee and then by the Court before it comes into effect.
The first progress report into the matter will be circulated to clients and posted on the dedicated website towards the end of February 2020.
Let’s note that the deadline for clients to submit their claims to custody assets and client money expired on February 6, 2020.
The online claims portal will, for the time being, remain open for the submission of claims, in accordance with the rules and regulations governing the special administration regime. Regarding clients who have not submitted a claim via the portal before the expiry of February 6, 2020 deadline, when making distributions and/or transferring your custody assets and/or client money to a regulated broker, the Administrators will be entitled to and intend to rely on SVS Securities’s records in determining that client’s entitlement to custody assets and client money.