Transfer of SVS Securities’ client assets and money to ITI Capital gets completed
Clients are expected to have access to their client money and client assets from July 23, 2020.
As FinanceFeeds reported earlier this month, clients of SVS Securities have been notified that their money and assets would be transferred to ITI Capital Limited.
The Joint Special Administrators now announce that the transfer to ITI of the vast majority of the client assets and client money held by SVS Securities completed at 14.25 on June 11, 2020. This is in line with the sale and purchase agreement (SPA) entered into between the company, ITI and the Joint Special Administrators, as well as the Court order obtained sanctioning the Distribution Plan and client money order in May 2020.
In light of completion of the transfer to ITI, the vast majority of clients’ client assets and client money have been transferred from SVS to ITI automatically without any further action required from clients. Unless clients have been informed otherwise by the Joint Special Administrators, they should receive the entirety of their client money and client assets.
Following the conclusion of the transfer, the SPA permits ITI an additional period of up to 6 weeks to finalise preparing its systems to operate and reconcile client money and client assets and conclude its on-boarding checks. Clients are expected to have access to their client money and client assets from July 23, 2020. Clients should not engage directly with ITI until the end of this six week period, the special administrators advise.
A very small minority of clients of SVS will not be eligible to transfer to ITI and these clients will be contacted separately by the Joint Special Administrators regarding options available for the return of their client assets and client money.
Let’s note that, according to a recent update provided by the UK Financial Services Compensation Scheme (FSCS), the Scheme intends to be open to additional claims against SVS.
The body says it is aware that the client statements issued by the joint special administrators on May 15, 2020 have revalued certain corporate bonds held by SVS on behalf of customers. Some have been given a nil value, others have been written down significantly.
FSCS understands that customers who have invested in these bonds may wish to make a further claim to FSCS if they consider that SVS is to blame for these additional losses. The Scheme will treat such claims separately from the costs of the Special Administration, which FSCS will also be meeting on behalf of eligible claimants.
At the moment, FSCS is not open to these additional claims because the priority is the special administration process, where FSCS is focusing on assisting the JSAs in a successful transfer to the nominated broker. However, the Scheme intends to be open to these claims as soon as it can.
