The joint special administrators of Reyker Securities Plc have provided an update to clients of the firm.

The JSAs declared a second interim distribution of 13.25 pence in the pound to all Clients that have submitted a claim and a valid Client Money Instruction Form (CMIF) (subject to any additional information which may be required to verify instructions to personal bank accounts or new brokers and Clients being FSCS Protected Claimants).

Payments for this second interim distribution commenced in November 2021 with almost all completed by 24 December 2021. The vast majority of Clients have now received 98.25% of their Client Money.

The balance of 1.75% will be retained as a provision against new or increased claims until such time that the Client Money Pool is closed and a final distribution of Client Money paid.

Clients who are not FSCS Protected Claimants (or yet to be confirmed as such) but have submitted their claim have received 87.25 pence in the pound as a further provision must be made for their share of the costs of the Client Money distribution process.

The JSAs have previously advised of the need to formally close the client money pool (CMP) to Client claims prior to returning the full balance (100%) of Client Money in order to protect participating Clients, the Company and the JSAs. The timing for closing the CMP is largely contingent on when all, or nearly all, Clients have submitted their claim to Client Money.

Despite extensive efforts to trace and notify Clients of the JSAs’ intention to close the CMP, there remains over 800 Clients with Client Money totalling about £1 million yet to submit a claim. Despite ceasing direct Client emails and telephone calls, new claims continue to be received each month.

On this basis, the JSAs are not yet in a position to apply to Court to determine a Hard Bar Date (being a date from which the Client Money Pool is closed to claims). This can only be done once the JSAs can demonstrate to the Court that there is no reasonable prospect of any further claims being received in order to protect Clients who would lose their entitlement to Client Money (and rank as a creditor against the Company’s estate).

The JSAs will continue to monitor the rate at which new claims are being received and review the appropriate time for a court application with their legal advisors and counsel.