Administrators of Reyker Securities provide update for clients
The Joint Special Administrators of Reyker Securities, which entered administration in October 2019, have provided an update to clients of the firm.
Following the approval of the Distribution Plan by the Court in October 2020, the JSAs have been working with the Nominated Brokers to finalise the formal transfer agreements and complete all regulatory and compliance matters in preparation for the transfer of Custody Assets and Corporate Action Income.
JSAs and Nominated Brokers have also been liaising closely with the Financial Conduct Authority (FCA) in relation to the proposed transfers. On December 16, 2020 the FCA gave its confirmation that it has no objection to the transfer of Custody Assets and Corporate Action Income having completed its final review of the Nominated Brokers’ preparedness.
In addition, the JSAs have continued to work with the Financial Services Compensation Scheme (FSCS) to confirm the extent of clients eligible for FSCS compensation based on the information presently available. Fewer than 1% of clients are presently ineligible for compensation and will have to pay their claimant’s share of the costs.
The JSAs are pleased to advise that as this work has been completed they will shortly be writing to the majority of Clients on 29 December 2020 to confirm that their Client Assets Return Statement is available to view on the Portal and their legal rights under the terms of the Distribution Plan.
Clients will be referred to the Portal to access their Client Assets Return Statement in the first instance. For Clients who are happy for their assets to transfer to their Nominated Brokers and who are FSCS Protected Claimants, no further action will be required for their Transfer of assets to be completed.
A small number of Clients (less than 1% of Clients) have either not provided the required information to qualify for FSCS compensation or, alternatively, do not qualify for FSCS compensation. Accordingly, these Clients will either have to complete their claim for FSCS compensation or, alternatively, pay for their Share of the Costs in advance of their assets being transferred or distributed. These Clients will be written to with an explanation of the payment options available.
A small number of Clients may not receive a letter at this time as a Nominated Broker has not been yet been found for their respective asset type. These Clients have been notified of this separately and such Clients are typically those holding Child Trust Funds or IF ISAs.
It is anticipated Client letters will be received either on or before 4 January 2021.