Reyker Securities’ distribution plan secures Court approval
The Joint Special Administrators of Reyker Securities, which entered administration in October 2019, have provided a bit of positive news to the clients of the firm.
According to the JSAs latest update, the Distribution Plan was approved by the Court at the open hearing which was held on October 16, 2020. The terms of the Distribution Plan allow for Clients to be transferred to one or more Nominated Brokers and the JSAs will soon be writing to each to set out details of the new Nominated Broker relevant to them.
Please note that for clients that are FSCS eligible (this is expected to be all retail Clients and a number of corporate Clients that have submitted eligible claims) with Client Assets of less than £85,000, or FSCS eligible Clients with Client Assets of more than £85,000 that have confirmed that they want to claim FSCS compensation, no further action is required in respect of the proposed transfer of your Custody Assets to the Nominated Broker.
Clients that have Clients Assets of more than £85,000 and have not yet confirmed, via the portal, that they wish to claim FSCS compensation are very strongly encouraged to consider doing so as your Client Assets will not be transferred until your share of the costs are either paid by the FSCS (by confirming that you wish to be compensated and the FSCS approving your claim) or by you making a payment to meet these costs.
The deadline to participate in the first interim distribution of Client Money has now passed and late instructions are not being accepted as part of the first distribution.
The JSAs explain that they received valid Client Money distribution instructions in respect of 8,834 Client plans and, as at the date of the latest update, have processed instructions in respect of 7,927 Client plans (representing 90% by number of Client plans).
The JSAs are continuing to verify and process the remaining Client Money distribution instructions.