The SVS Securities and the administrators seek confirmation from the court that the SVS can transfer the client’s money pool to the Nominated broker under certain conditions.
01 May, 2020 | AtoZ Markets – SVS Securities PLC is an investment firm that offers brokerage and discretionary management services. SVS broke after the Financial Conduct Authority forced it to cease all regulated activity and freeze clients’ money and assets on 2 August. However, the watchdog has reassured customers that the Financial Services Compensation Scheme will cover a certain amount of losses.
The creditors’ committee approved the final terms of the Distribution Plan on 21 April. However, the distribution plan will now be submitted to the court for approval next month, scheduled for 7 May.
Customers who have a claim against the client money pool held by SVS Securities are invited to note that during the court hearing scheduled for 7 May 2020. The request will hear concerning the customers’ money held by SVS.
Leonard Curtis also revealed that it is dealing with £ 277 million in custody assets and £ 24 million in client money on 21,000 accounts. Besides, there are approximately 670 unsettled transactions, including certain bonds, the value of which remains uncertain.
The SVS and the administrators seek confirmation from the court to transfer the client money pool to the Nominated broker. They also seek to obtain instructions:
- Which will facilitate the efficient resolution of any dispute concerning the existence of client money entitlements; and
- Protect the SVS and the administrators against any claim of a person who established money entitlement only after the transfer has been made. In the circumstances, the directors have not aware of the date of transfer.
If the request accepts, for the vast majority of clients, their share of the clients’ money reserve will transfer to the Nominated broker.
SVS Securities Administrators Expect Full Return to Clients
The legal notice provides that clients will be able to access their funds from mid-July 2020, pending court approval. The administrator also said that SVS customers should get a “full return” from their cash. It is after getting around £ 25 million from customers’ money.
The court hearing will take by videoconference at the High Court of Justice due to the current COVID-19 situation. Clients don’t require to attend the hearing on 7 May 2020, but they can do so if they wish.
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