Reyker Securities administrators not able to close Client Money Pool
The Joint Special Administrators (JSAs) of Reyker Securities have published their fourth progress report for the period 8 April 2021 to 7 October 2021.
The administrators explain that they have undertaken an extensive client tracing and notification exercise (in liaison with the FCA) with a view to maximising client engagement, receiving claims from all or nearly all known clients and therefore being in a position to close the Client Money Pool (CMP) as early as possible.
The JSAs also liaised extensively with the Financial Services Compensation Scheme (FSCS) as to possible new protections that may have been available to clients, exclusively in this matter, that had not yet submitted a claim and the Insolvency Service as to the requirements for any possible transfer of unclaimed and unpaid Client Money.
Despite these efforts, there presently remains more than 900 Clients with over £1.2 million of aggregated Client Money yet to submit a claim and new claims continue to be received each week. Therefore, based on explicit legal advice and counsel opinion, it is not yet appropriate for the JSAs to commence the legal process of closing the CMP and, until such time that this process is complete, a final distribution of Client Money cannot be paid.
Given the JSAs are not able to close the CMP and pay a full and final distribution at this time, the JSAs have decided to retain a suitable provision of less than 2% of the CMP for new or increased claims and consider it in Clients’ best interests to pay a second distribution of 13.25 pence in the pound (less a provision for a Client’s share of the costs where a Client is not, or not yet confirmed as being, an FSCS Protected Claimant).
This will take the total amount of Client Money to be distributed up to 98.25% for the vast majority of Clients and leave approximately £1 million within the CMP for new or increased claims.
The JSAs will commence the second distribution following 12 November 2021 in order to give Clients an opportunity to update their Client Money instructions if necessary (e.g. if their bank account details have changed). As before, given the volume of Clients with Client Money (more than 9,000) and variety of Client Money instructions received, the distribution process will take several weeks to complete.
Each Client with a share of Client Money will receive a separate notice of the second interim distribution by post. These letters will provide further detail of any action that may need to be taken by you (if not already done so).