Reyker Securities Update - June 2020
As you are aware, Mark Ford, Adam Stephens and Henry Shinners of Smith & Williamson LLP were appointed Joint Special Administrators ("the JSAs") of Reyker Securities Plc on 8 October 2019.
All assets held by Reyker on behalf of its clients continue to remain safe and under the control of the JSAs.
Below is a summary of the latest update from the JSAs -
The JSAs' are now adopting a strategy to return assets to clients through a series of transfers to 5 different brokers. In parallel, the JSAs are also looking to make a partial distribution of client money before the asset transfer.
The JSAs have adopted this strategy following the withdrawal, in early April 2020, of a potential purchaser when the strategy had been to return assets through a single, wholesale transfer to this one broker.
The JSAs have made clear that their new strategy takes account of the following:
- the need to return client money and assets as soon as possible,
- the situation with the COVID-19 pandemic and
- the wishes of intermediary providers who represent a large chunk of the clients.
The UK Financial Services Compensation Scheme (FSCS) is currently working with the JSAs on a distribution plan and funding agreement. This will allow for the transfer of assets to new brokers. The Distribution Plan will be subject to approval by the Creditors Committee and the Courts. Whilst the JSAs are looking for a court date in July 2020, it is recognised that this could be challenging.
For Client money, the JSAs have advised that this can be returned to customers without the need for a court process and intend to proceed with a distribution of a substantial percentage of the client money balances held by Reyker. This will take place before the return of assets.
Gravitas currently awaits formal communications from the JSAs as regards the distribution plan and the partial return of client monies.
Please note that the JSAs have set up a dedicated website page to provide all updates to stakeholders, the link of which is provided below. We recommend that you consult the same.
Gravitas has been and will remain in regular contact with the JSAs and will of course continue to keep you
updated of all developments regarding the above.