On Tuesday 8 October 2019, the Court appointed Mark Ford, Adam Stephens and Henry Shinners, all of Smith & Williamson LLP, as Joint Special Administrators of Reyker Securities Plc, following an application by the Directors.
I have an investment held by Reyker, will I get my money or assets back?
The Joint Special Administrators have concluded that a distribution of client money and a series of partial transfers of custody assets is the most appropriate strategy following the withdrawal of a proposed purchaser of the client assets held by Reyker. They have started to distribute client money through an interim distribution.
Any client that has not yet submitted a Client Money Instruction Form will not have been part of the first distribution and will not be included in any subsequent distribution until their completed Client Money Instruction Form has been submitted to the Joint Special Administrators via the Portal. In the meantime, any entitlement owing to clients will continue to be safeguarded under the Joint Special Administrators’ control.
Further information for clients with client money holdings can be found on the Smith & Williamson website.
The transfer of custody assets has not yet started as this is subject to a court-led process and requires approval by the Court of a Distribution Plan. This has been listed to be heard by the Court on 16 October 2020. If the Distribution Plan is approved, the Joint Special Administrators will issue confirmation of this as well as further information to each Client.
In the meantime, clients with custody asset holdings can find further information on the Distribution Plan using the same link as above.
What is the FSCS and will they cover any losses?
The Financial Services Compensation Scheme (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.
For eligible clients, the FSCS will cover custody assets and client money shortfalls up to £85,000 including the costs associated with their distribution back to clients.
The Special Administrators will work with the FSCS to determine the position and will provide further updates.
Being alert to scams
We have been made aware of fraudulent communications being sent to clients seeking to impersonate Reyker or claiming to be connected to Reyker, Smith & Williamson or intermediary providers. All customers should remain alert to the possibility of fraud. If you are cold called by someone claiming to be from, or connected to, Reyker or Smith & Williamson please end the call and call them back using the Client Helpline number given below. Further guidance is provided on the Smith & Williamson website.
Why did the Directors of Reyker apply to place the firm into Special Administration?
Reyker’s Directors had been pursuing a sale of the business, however they were unable to complete this sale. Due to the firm’s financial difficulties the Directors resolved that it was cash flow insolvent, and in discussion with us, took steps to place the firm into Special Administration.
Where can I find more information?
Customers can find more information about how they will be affected via:
The Joint Special Administrators have previously written to all clients and creditors with their proposals for the Special Administration. Information on this and progress made with the Special Administration is available on the Smith & Williamson website.
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.
The Special Administrators are working closely with the FSCS and expect the vast majority of clients will be compensated in full by the FSCS for these costs. As a result, the vast majority of clients will receive their client money and custody assets in full.
Do I need to use a claims management company?
You should proceed with caution if you are approached by a claims management company (CMC).
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 you first discuss this with the Special Administrators using the contact details provided on their website. The FSCS has also produced some points to consider before using a CMC.
Is the FCA overseeing the administration?
Reyker 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.
I hold shares in the VT Reyker Real Assets fund, how does this affect me?
The authorised corporate director of the fund is Valu-Trac Investment Management Limited (Valu-Trac). Valu-Trac determined that it was in the best interests of investors for it to manage the fund in the interim before this fund merged with the VT Gravis UK Infrastructure Income Fund in December 2019. For further information please contact Valu-Trac.