Britain’s Financial Services Compensation Scheme (FSCS) today has enabled the vast majority of SVS Securities’ clients to access their money and assets, which have been beyond reach for almost a year. Over 18,000 clients will get their holdings returned through nominated broker ITI Capital.
In an update on its website, the lifeboat scheme said ITI set up clients’ new accounts in its systems and already provided them with their respective login details. Once the onboarding process completed, they can begin to access their share of nearly £24 million in funds secured by administrators.
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“ITI will contact clients individually with specific instructions on how to register for an account with them in due course. Please do not contact ITI until you are instructed to so. Direct any questions to the Joint Special Administrators (JSAs),” FSCS further explains.
The administrator said in March that other than a very small number of exceptions, the SVS clients are expected to get a ‘full return’ of their cash. Prior to selecting ITI Capital in June, they confirmed that they received interest from more than 100 UK firms inquiring about a transfer of SVS business and client money to their own companies.
FSCS paid £527 million last year
SVS Securities has been put into special administration back in August 2018 after the FCA said it promoted high-risk bonds to retail investors and could not explain how it valued illiquid assets.
The regulator also said SVS had questionable commission arrangements “without apparent regard” for the investment needs of customers, resulting in high fees and charges, which it warned had “negatively impacted” clients.
The FSCS earlier this month has revealed that it paid a total of £527 million in compensation to 258,119 customers of failed firms during 2019/20 fiscal year. This lifeboat system attributed the higher figure for this year to a £75 million increase in the costs for the Life Distribution and Investment Intermediation class, of which £56 million were paid for customers of SVS Securities and Reyker Securities, which failed in 2019.
The scheme also said it has started paying compensation to investors who relied on claims for misleading advice in the collapsed mini-bond provider London Capital & Finance.
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