The joint special administrators of Reyker Securities have announced a third and final distribution of client money.

The JSAs are now able to proceed with a third and final distribution of Client Money to the majority of FSCS Protected Claimants, whilst protecting recipients from a risk of future claims against the distributed funds.

It is anticipated that these distributions will be paid either on or before 31 July 2023.

Clients that are either not FSCS Protected Claimants or, alternatively, FSCS Protected Claimants whose respective share of costs exceed the compensation limit will not receive any further Client Money at this time as the sums previously retained from prior distributions are required to meet the respective Clients’ share of the distribution costs.

Notwithstanding this, the JSAs presently anticipate a small and final balance of Client Money may be paid to such Clients once the CMP has been closed to all claims and the total cost of the Client Money distribution finalised; particularly in circumstances where any unclaimed Client Money by the Hard Bar Date may be applied against such costs.

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. This can be done via the Portal or by contacting client services.

Clients with smaller claims, that do not wish to pursue any repayment of funds, are still encouraged to submit their claim and to provide instructions for their entitlements to be paid to charity. This will help expedite the closure of the client money pool (CMP).

Any FSCS Protected Claimants that do not receive their final distribution by 31 July 2023 should contact client services as further action may be required before the JSAs are able to proceed with the payment.

As more than 790 Clients have still not submitted a claim to their Client Money and claims from known Clients continue to be received and agreed each month, the JSAs’ legal advice remains that an application for a Hard Bar Date is premature and not without risk of being rejected.

The JSAs are, however, keen not to cause any further delay for those Clients that have done all that they need to do and whose respective share of costs are due to be paid in full from the FSCS. Therefore, following work which was able to be completed in this progress period, partly due to the passing of time and the consequential reduction in risk of unforeseen claims being received, the JSAs will be proceeding with the aforementioned third and final distribution of Client Money to the significant majority of FSCS Protected Claimants either on or before 31 July 2023.

More than 99% of transferrable Custody Assets due to Transfer to the Nominated Brokers have either been completed and now held with the respective Nominated Broker or, alternatively, instructions have been issued and the Transfer process is underway.

The JSAs continue to work with the Nominated Brokers to finalise the Transfer of the very few remaining stock lines, each of which will require a bespoke solution to overcome specific challenges.

Clients who either opted out of a Transfer to one of the JSAs’ Nominated Brokers or, alternatively, did not have a Nominated Broker (i.e. IF ISA, CTF and certain overseas Clients), are part of the Distribution process.

Once a Client has opened an account with a new broker they should provide details of their new broker to the JSAs via the Portal (or by completing a paper equivalent form on request).

The JSAs have completed Client Transfers and Distributions to more than 70 different brokers. They estimate that Distributions are now more than 84% completed (based on number of returnable Custody Asset lines subject to a Distribution).

Prior to the JSAs being able to commence work on a Distribution, Clients must have confirmed their proposed new broker can accept their Custody Assets and have opened an account with them. The new broker will typically ask you to complete a ‘transfer request form’ which will then be sent to the JSAs for processing.

Clients are reminded that due to the number of brokers receiving Custody Assets, ranging across electronic, paper and statement-based securities, and the differing requirements and response times of Registrars, Custodians and Fund Managers, the completion of Transfers and Distributions will continue to be phased over time and will, most likely, take several weeks with some assets, for example Innovative Finance ISAs (IF ISAs), taking longer.