On 5 August 2019, the Court appointed Julien Irving, Andrew Poxon and Alex Cadwallader, all of Leonard Curtis, as Special Administrators of SVS Securities Plc (SVS), following an application by the Directors. The Joint Special Administrators are currently considering the options for the business going forward, including a sales process of the whole or part of the business. They will be speaking with interested parties about this.
What is the FSCS and will they cover any losses?
The FSCS protects consumers when financial services firms fail. It is the compensation scheme for customers of UK authorised financial services firms. It has eligibility criteria both in respect of the people and businesses who are covered.
The FSCS will cover custody assets and client money shortfalls, including the costs associated with their distribution back to clients, for eligible clients up to £85,000.
The Special Administrators will work with the FSCS to determine the position and will provide further updates.
What concerns led the FCA to take action on this firm?
Acting on intelligence received about the assets in which SVS invested its clients’ money, we conducted urgent supervisory work and identified serious concerns about the way in which the business was operating.
The FCA has opened an investigation into this matter.
Why did the Directors of SVS take this action?
Following action taken by the FCA to impose requirements on SVS stopping it from conducting regulated activities and restricting it from disposing of its own or its clients’ assets, the directors considered the viability and solvency of SVS. They obtained solvency advice and resolved to place the firm into Special Administration.
Where can I find more information and who can I contact?
Customers can find more information about how they will be affected by visiting the Leonard Curtis website www.leonardcurtis.co.uk/SVS and can contact the administrators by email: [email protected] or call 01282 610635.
I have an investment held by SVS, will I get my money or assets back?
The Special Administrators will carry out an assessment of the client money and assets held by the firm to confirm the current position. Following the assessment, the Special
Administrators will work to return as much client money and assets to customers as possible, as quickly as possible.
The Special Administrators will determine in due course how best to return the client money and custody assets. The Special Administrators will write to you with their proposals for the Special Administration within eight weeks of appointment, this will include the process of how you make a claim.
Do I have to pay to get my money or assets back?
There are costs associated with distributing client money and custody assets back to clients, including the administrators’ fees. Under the legislation, these costs will be deducted from the client money or custody assets. Please see above regarding FSCS coverage for these costs.
Do I need to use a claims management company?
You should proceed with caution if you are approached by a claims management company.
For the vast majority of clients, there is no benefit in involving a third party in reclaiming your assets.
If you use a CMC to assist in the return of your assets, the CMC is likely to seek a fee which may reduce what you get back.
If you are considering using a CMC to assist with the return of your assets, we suggest that before you decide to proceed with this route you first discuss this with the Special Administrators using the contact details provided on their website.
Being Alert to Scams
All customers should remain alert to the possibility of fraud. If you are cold called by someone claiming to be from SVS or Leonard Curtis please end the call and call them back using the number above.
Is the FCA overseeing the administration?
SVS is still authorised by the FCA and remains subject to supervisory oversight and the FCA’s rules. The Special Administrators are officers of the Court and need to comply with all insolvency law. The individuals appointed are authorised to act as licensed insolvency practitioners by the Institute of Chartered Accountants in England & Wales (ICAEW). We are liaising closely with the Special Administrators.