Nixse
0

SVS Securities; From Special Administration to Dissolution

SVS Securities, which was put under special administration in August 2019, has finally reached the end of its prolonged compensation process as the company moves from special administration to dissolution.

“I refer to my appointment as Joint Special Administrator of the Company on 5 August 2019 and now write to advise you that the special administration is being concluded and the Company is being moved from special administration to dissolution,” Leonard Curtis’ Andrew Poxon, a Joint Special Administrator of SVS said.

The administration ended on 30th March 2023, a year later than initially expected due to a court order that the special administrators received earlier this month. Furthermore, the administrators have taken steps to cancel SVS’ registration with the Financial Conduct Authority (FCA). This move marks the end of a challenging period for SVS and its clients, who have been waiting for compensation since the firm’s collapse. While the compensation process may have ended, the impact of this event will be felt for some time to come.

The Transition Wrangles

SVS Securities, which was authorized and regulated by the Financial Services Authority, provided a range of trading and investment management services, including stocks, CFDs, IPOs, corporate finance, advisory and brokering execution, private equity services, and an institutional desk. However, the Financial Conduct Authority (FCA) intervened and placed the company under special administration in August 2019, citing concerns about its operations.

During the special administration, ITI Capital purchased SVS’s client books, and the administrators facilitated the transfer of platforms to ITI. However, ITI experienced technical difficulties in onboarding SVS clients, resulting in distress among some clients. The chaos ultimately forced ITI Capital to exit the retail business in 2022.

The SVS administrators have emphasized that over 99 percent of SVS clients were successfully transferred to ITI through a single bulk transfer on June 11, 2020. Only 111 SVS clients were not eligible for transfer and were dealt with outside of ITI. Additionally, only eight clients of SVS, including five corporate clients, did not receive the full compensation, as their deposits exceeded the limit set by the Financial Services Compensation Scheme (FSCS).

Despite the compensation process concluding with the move from special administration to dissolution, the impact of SVS’s collapse and subsequent transfer to ITI has been significant. The technical difficulties experienced by ITI in onboarding SVS clients have highlighted the challenges of handling large-scale transfers in the financial services industry.



You might also like
Leave A Reply

Your email address will not be published.