SVS Securities administrators have extended by nearly four weeks the deadline, aka bar date, to file claims against the failed stockbroker for clients’ money and assets held by SVS at the time of its collapse.
Liquidators now extend the original January 10 deadline to February 6, arguing the move would allow those who have not sought compensation to receive payments and view their holdings as the company records showed on August 5.
Once all clients’ claims have been verified and adjudicated, cash distributions will be made to clients on a pro-rata basis, meaning proportionately in terms of what is owed. Those who don’t submit their claims by the bar date could see their balances transferred to a regulated broker, though it is not guaranteed that late filings will be taken into account.
Leonard Curtis revealed that they are dealing with £277 million of custody assets and £24 million of client money across 21,000 accounts. Further, there are around 670 unsettled transactions, including certain bonds, the value of which remains uncertain.
2020 Global Market Outlook: How the “Known Unknowns” Can Affect CurrenciesGo to article >>
“The Administrators intend to effect a transfer of custody assets and client money to a regulated broker. For any client who does not submit a claim via the portal or paper Claim Form by 6 February 2020, in accordance with the Investment Bank Special Administration Regulations 2011, when making distributions and/or transferring your custody assets and/or client money to a regulated broker, the Administrators will rely on the records of SVS and you will not be able to challenge this. You are therefore strongly encouraged to submit your claim on or before 6 February 2020,” it further explains.
Some customers would face shortfalls
Clients can visit the Leonard Curtis information website www.leonardcurtis.co.uk/svs/, where there is a link to the client claims portal, which can be accessed at https://LeonardCurtis.InsolvencyData.co.uk.
This is a positive step forward in the process of returning the available funds to clients who suffered losses as a result of the collapse SVS after the FCA identified “serious concerns” about how the company was operating its business.
The administrators also confirmed earlier that they received interest from more than 100 UK firms inquiring about a transfer of SVS business and client money to their own companies.
Finally, the claims portal also allows clients to apply for FSCS compensation through a simplified process. The lifeboat announced earlier last year that those hit by financial losses are eligible for recompense through the FSCS, which covers investments up to the value of £85,000. But they warned there might be a “small number” of clients who may face shortfalls in their funds as above that level they would get nothing more.