The Financial Services Compensation Scheme (FSCS) in the United Kingdom announced on Friday that it would protect eligible customers of SVS Securities, whose money has not been returned to them.
In particular, the agency will protect customers who are categorized by the Joint Special Administrators as ‘Elective Professional Clients (EPC) holding an FX account balance.’ This includes individuals and small businesses within that group.
“We’ve reached this decision because of the type of investment, and because of the way the investment was held. We can cover shortfalls for eligible customers with valid claims up to our compensation limit of £85,000,” the statement from the company said.
SVS Securities goes into special administration
As Finance Magnates reported, in August of this year, SVS Securities was put into special administration after the Financial Conduct Authority (FCA) said it conducted “urgent supervisory work” and identified “serious concerns” about how the company was operating its business.
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Julien Irving, Andrew Poxon, and Alex Cadwallader, of Leonard Curtis Recovery Ltd, have been appointed Special Administrators of SVS Securities. At the time, the FCA warned that in the event clients are short-changed, claims may fall on the FSCS.
FSCS is working with special administrators
At present, the FSCS is working with the special administrators to find the best way to return the money, the statement said. In the meantime, the eligible clients don’t need to take any action, and there is no need to make an application with the agency, it continued. As soon as it knows more, it will make further announcements.
SVS Securities is a wealth management firm. The company offers a range of services to its clients, including advisory stockbroking, online share dealing, foreign exchange (forex) trading, and discretionary fund management services.
In October, the special administrators presented their proposals to creditors and clients. The proposals, which were approved, said that all client money would be pooled into bank accounts controlled by the administrators, and once the overall total of claims is known, it will be returned on a pro-rata basis.