UK FSCS works to enable Reyker Securities clients to get access to their assets
The UK Financial Services Compensation Scheme (FSCS) today provided an update to clients of Reyker Securities which was placed in administration in October 2019.
Around 11,500 former clients of Reyker Securities have taken a major step forward toward being able to access their assets.
The FSCS says that it has been working closely with the Joint Special Administrators (JSAs) and their team at Smith & Williamson to ensure that Reyker clients’ assets are returned as quickly as possible. The JSAs will first be confirming the identity of the five nominated brokers. This will be followed by a Client Asset Return Statement to customers, which will detail all the assets to be returned to them by a series of transfers to new brokers.
As FX News Group has reported, a Distribution Plan outlining the basis for these transfers was approved by the High Court on October 16, 2020. The JSAs will now continue their work to effect the transfers approved under that plan.
Jimmy Barber, Chief Operating Officer at FSCS, said, “We want to thank Reyker clients for their patience. We hope it will be possible for the JSAs to set out more detailed timescales for the transfer of assets in the coming weeks.
“There have been several instances of third parties issuing fraudulent communications targeting Reyker’s clients affected by the Special Administration. We would ask Reyker clients to remain vigilant and exercise caution when dealing with correspondence regarding the Special Administration.”
FSCS will meet the costs of the Special Administration on behalf of all individual customers of up to £85,000 per customer. FSCS protection is also available to most small companies.
FSCS’s involvement will allow the vast majority of customers to transfer to the new brokers without any deduction from their assets.