UK FSCS intends to be open to additional claims against SVS Securities

Maria Nikolova

The client statements issued by the administrators on May 15, 2020 have revalued certain corporate bonds held by SVS on behalf of customers.

The UK Financial Services Compensation Scheme (FSCS) today published an update regarding SVS Securities.

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.

FSCS can pay compensation of up to £85,000 in respect of the total liabilities that might be owed to customers by SVS.

As FinanceFeeds reported, the final terms of the Distribution Plan and the Client Money order were approved by the Court on May 7, 2020. The approval is an important milestone in returning Client Assets and Client Money.

The Joint Special Administrators plan to effect the transfer of the vast majority of Client Assets and Client Money to the Nominated Broker in early June 2020, with clients expected to be able to access their Client Assets and Client Money and engage with the Nominated Broker from mid-July 2020.

For the vast majority of clients, the transfer will take place without any action required of those clients. A small number of clients may be required to provide additional information prior to the transfer and these clients will be contacted individually by the Joint Special Administrators in the week commencing May 18, 2020.

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