SVS Securities Administrators Seek Cancellation of FCA Authorization

Monday, 06/02/2023 | 10:20 GMT by Arnab Shome
  • The administrators also applied for an end to their oversight.
  • The administrators returned the proceeds of most SVS clients by the end of 2021.
fca
Bloomberg

The joint special administrators of SVS Securities are preparing to cancel the now-failed broker’s authorization with the United Kingdom’s financial market regulator, the FCA (Financial Conduct Authority). It will ensure that the broker cannot carry out regulated activities.

SVS Clients Were Compensated

SVS Securities provided trading services in stocks, CFDs, IPOs, and corporate finance, authorized and regulated by the Financial Services Authority. In addition, it offered various ‎investment management services, including advisory and brokering Execution, IPO ‎private equity services, and an institutional desk.‎

The company was placed under special administration in August 2019 after the Financial Conduct Authority stopped it from conducting business over concerns about its operations.

ITI Capital, another London-based financial advice and investment services company, bought the client books from SVS, and the administrators facilitated the transfer of platforms. However, ITI faced technical difficulties onboarding SVS clients, resulting in distressed clients, some of whom even complained to the FCA. The chaos forced ITI Capital to exit the retail business last year.

Check out the latest FMLS22 session on "What CFDs Traders Value Most & How They Choose Their Brokers."

SVS Administration Comes to An End

Meanwhile, the SVS administrators submitted a court order, seeking an end to its special administration oversight of the failed brokerage company. The United Kingdom’s High Court of Justice will hear the application on or around 15 March 2023.

The end of the administration of SVS was initially anticipated for early 2022. Most of the creditors and clients of the failed broker have received compensation. However, the Administrators urged “any clients who have not yet engaged with the Administrators in respect of the return of their client assets and/or client money ” to contact them immediately.

“Clients and creditors are not required to attend the Court hearing but may do so if they wish. If any clients or creditors wish to obtain further details regarding the hearing with a view to attending the hearing or otherwise, they should contact the Administrators,” the notice published last week stated.

The administrators further highlighted that it would apply for revoking the FCA authorization before the court hearing of its discharge application.

The joint special administrators of SVS Securities are preparing to cancel the now-failed broker’s authorization with the United Kingdom’s financial market regulator, the FCA (Financial Conduct Authority). It will ensure that the broker cannot carry out regulated activities.

SVS Clients Were Compensated

SVS Securities provided trading services in stocks, CFDs, IPOs, and corporate finance, authorized and regulated by the Financial Services Authority. In addition, it offered various ‎investment management services, including advisory and brokering Execution, IPO ‎private equity services, and an institutional desk.‎

The company was placed under special administration in August 2019 after the Financial Conduct Authority stopped it from conducting business over concerns about its operations.

ITI Capital, another London-based financial advice and investment services company, bought the client books from SVS, and the administrators facilitated the transfer of platforms. However, ITI faced technical difficulties onboarding SVS clients, resulting in distressed clients, some of whom even complained to the FCA. The chaos forced ITI Capital to exit the retail business last year.

Check out the latest FMLS22 session on "What CFDs Traders Value Most & How They Choose Their Brokers."

SVS Administration Comes to An End

Meanwhile, the SVS administrators submitted a court order, seeking an end to its special administration oversight of the failed brokerage company. The United Kingdom’s High Court of Justice will hear the application on or around 15 March 2023.

The end of the administration of SVS was initially anticipated for early 2022. Most of the creditors and clients of the failed broker have received compensation. However, the Administrators urged “any clients who have not yet engaged with the Administrators in respect of the return of their client assets and/or client money ” to contact them immediately.

“Clients and creditors are not required to attend the Court hearing but may do so if they wish. If any clients or creditors wish to obtain further details regarding the hearing with a view to attending the hearing or otherwise, they should contact the Administrators,” the notice published last week stated.

The administrators further highlighted that it would apply for revoking the FCA authorization before the court hearing of its discharge application.

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6420 Articles
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