SVS Securities Administrators have extended the deadline to file compensation claims against the failed stockbroker for clients’ money and assets held by SVS. Those who do not file their complaints by the bar date will be able to see their balances transferred to a regulated broker.
16 January, 2020 | AtoZ Markets – SVS Securities Administrators now extend the original deadline from 10 January to 6 February. Liquidators argued that the move would allow those who have not sought compensation to receive payments. They can see their holdings, as the company’s records show on 5 August. Currently, administrators are resolving disputes filed by customers who disagreed with their statement.
Administrator Provides Update of SVS Securities Compensation Claims
Leonard Curtis has revealed that it is dealing with £277 million of assets in custody and £24 million of client money on 21,000 accounts. Besides, there are approximately 670 unsettled transactions, including some bonds, the value of which remains uncertain. It further explains:
“The Administrators aim to effect a transfer of assets in custody and clients’ money to a regulated broker. When making distributions, the Administrators will rely on the records of SVS. Any client who does not file a complaint by 6 February 2020, will not able to contest it. Therefore, you are warmly welcome to submit your claim on or before 6 February 2020.”
Once all customer claims have been verified and awarded, cash distributions will be made to customers on a pro-rata basis. Those who do not submit their claims by the closing date can see their balances transferred to a regulated broker. But that doesn’t guarantee that late filings will be taken into account.
Some Affected Customers May Face Shortfalls
This is a positive step forward to return the available funds to customers who suffered following the collapse of SVS. The administrators also previously confirmed that they had received interest from more than 100 UK companies. Those companies were asking for information on a money transfer from SVS and customers to their companies.
Finally, the claims portal allows customers to apply for FSCS compensation through a simplified process. Lifeboat announced early last year that those who affected by financial losses entitled to compensation through the FSCS. It covers investments of up to £85,000 worth. FSCS already paid £473 million in compensation to 425,760 customers of failed firms during 2018/19. But they warned that there might be a “small number” of customers who could face shortages in their funds, above that they would get nothing more.
Think we missed something? Let us know in the comments section below.