Former professional clients of failed broker, SVS Securities now have ActivTrades plc UK as one of two options available to them to access their money and assets, which have been beyond reach for more than a year.
The move comes as many clients faced delays in accessing their funds held at ITI Capital, months after the nominated broker acquired the client book of SVS Securities back in June. Britain’s regulators and SVS administrators, Leonard Curtis has to step in to monitor the situation and finalize funds distribution.
Despite ITI claiming the issue had been resolved in August, some SVS clients reported that they remain locked out of their assets by their new stockbroker. At least 20 clients told Finance Magnates they were unable to access ITI Capital’s onboarding system in September, almost three months after the FSCS opened the gates for over 18,000 clients.
ActivTrades tried to lure the newcomers into staying, saying that they now have a wider selection of asset classes to choose from, including FX and CFDs trading, and pricing will remain competitive to what was previously paid at SVS. Additionally, while they were previously allowed to trade only in LSE stocks, they now have a wider selection of asset classes to choose from.
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ActivTrades Enables SVS Clients to Withdraw Funds for Free
“We look forward to welcoming all the EPC clients of SVS who chose to transfer to ActivTrades, and we will ensure the switch is as seamless as possible. Not only will these clients be able to access their assets and start trading quickly, they will also have a wider range of FX and CFD products to trade. We welcome this opportunity to show the industry our technology, efficiency and financial expertise,” said Alex Pusco, CEO of ActivTrades.
Professional clients switching to ActivTrades will not have to pay exit fees to ActivTrades if they decide to withdraw their funds. “Additionally, these clients will immediately qualify for up to £1,000,000 of insurance covering client funds above the threshold provided by the FSCS and will benefit from the protection of their funds being held on segregated accounts,” the company further states.
SVS Securities was put into special administration back in August 2018 after the FCA said it promoted high-risk bonds to retail investors and could not explain how it valued illiquid assets.
The regulator also said SVS had questionable commission arrangements ‘without apparent regard’ for the investment needs of customers, resulting in high fees and charges, which it warned had ‘negatively impacted’ clients.