More than £53.6M now distributed to Reyker Securities’ clients
The joint special administrators of Reyker Securities plc have posted their latest progress report. The document covers the six month period from 8 October 2021 to 7 April 2022.
In November 2021, 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).
This means over 80% of all Clients with a claim to Client Money 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 (CMP) is closed and a final distribution of Client Money paid.
For the small minority of Clients who are not FSCS Protected Claimants (or yet to confirmed as such), being less than 1% of all Clients, an additional 11% of Client Money was retained as a provision against their potential share of costs for the Client Money Distribution. These Clients are therefore able to receive up to 87.25 pence in the pound across both the first and second distributions.
More than £53.6 million of the CMP has now been distributed to Clients (being 95% by value of the maximum amount of Client Money that can be distributed at this time and 93% of the total CMP value).
Should you wish to update your Client Money instructions or have any queries in relation to the second distribution, please write to clientservices@reyker.com.
As previously reported, the JSAs need to formally close the client money pool (CMP) to further, new or increased, Client claims prior to settling final costs and returning the residual balance of Client Money; this is necessary to protect all 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.
Following legal advice and discussions with the Creditors’ Committee, the JSAs consider the most appropriate way to do this is by way of an application to Court to set a Hard Bar Date, being a final date by which any claims to Client Money must be made by any party. After the Hard Bar Date, the CMP would be closed to new or increased claims and the JSAs should be able to distribute 100% of Client Money claimed by Clients.
In order for the Court to make a Hard Bar Date order, (i) it needs to be satisfied that the JSAs have taken all reasonable steps to identify and contact persons who may be entitled to the return of Client Money and (ii) it needs to consider that if a hard bar date is set there is “no reasonable prospect that the JSAs will receive claims for the return of Client Money after that date”.
Despite the extensive client tracing program undertaken by the JSAs last year and 190 new claims to Client Money over the last six months (being an average of 32 new claims per month), there remains more than 800 Clients (circa 9%) yet to submit a claim to their share of Client Money, totalling approximately £1 million. Over 100 of these Clients have a claim to more than £1,000.
Accordingly, and in light of recent discussions with their legal advisors about the need to reduce further the number of high value outstanding claims, the JSAs considered it appropriate to revisit and supplement their previous attempts to trace Clients and a separate project team was established to:
- Visit the last known address of any Clients with a claim to more than £10,000 with a view to hand delivering documents, personally explain the purpose of the Special Administration, answer any questions or source forwarding addresses where Clients may have moved; and
- Undertake additional internet and social media searches (including Google, Facebook and Linked-in).
It was considered expending further time and cost in this regard was in line with the JSAs regulatory and statutory duties, proportionate and in the interests of all Client Money Clients given it may help expedite the application to Court for a Hard Bar Date and, therefore, the final dividend.
The JSAs will continue to monitor the rate of new Client claims received and keep the timing of any application for a Hard Bar Date under review.
Clients that are yet to submit a claim to Client Assets and/or submit a CMIF (confirming their distribution instructions) are encouraged to do so immediately in order to expedite the distribution of Client Money for both themselves and other Clients. This can be done via the Portal and further guidance is available on the Website or by contacting client services on 0800 048 9512 or by email at clientservices@reyker.com.