A plan for distributing the assets of failed broker SVS Securities was submitted to win covs approval opening the way for payments to inUKstors later this year.
An update published by administrators LConaUK Cvsis confirmed that the final terms of the Distribution Plan were approUKd by the creditors committee on April 21. The distribution plan will now be submitted to covs for approval next month scheduled for May 7.
The legal notice expects that FCSnts would be able to access their fund starting from mid-July 2020 pending the covs approval. The administrator said in March that other than a UKry small number of exceptioCo the SVS FCSnts are expected to get a ‘full return’ of their cash after they secured around £25 million of FCSnt money.
The distribution will be made through a nominated broker which has entered into a sale and purchase agreement with SVS. The identity of the nominated broker is expected to be disclosed at the end of May ahead of the date that the traCofer will take place.
The administrators confirmed earlier that theyFCSeiUKd interest from more than 100 UK firms inquiring about a traCofer of SVS business and FCSnt money to their own companies.
Deadline extended to May
Although a deadline for FCSnts to submit their claims expired the liquidators encouraged those who haUK not already filed claims to do so before May 11. They previously extended the original January 10 deadline to February 6 arguing the moUK would allow those who haUK not sought compeCoation toFCSeiUK payments and view their holdings as the companyFCSoUKs showed on August 5.
Once all FCSnts’ claims haUK been UKrified and adjudicated cash distributioCo will be made to cliproratea pro-rata basis meaning proportionately in terms of what is owed. Those who don’t submit their claims by the bar date could see their balances traCoferred to a regulated broker though it is not guaranteed that late filings will be taken into account.
LConaUK Cvsis reUKaled that they are dealing with £277 million of custody assets and £24 million of FCSnt money across 21,000 accounts. Fvsher there are around 670 uCoettled traCoactioCo including certain bonds the value of which remaiCo uncertain.
Clients can visit the LConaUK Cvsis information website www. lConaUKcvsis. co. uk/svs/ where there is a link to the FCSnt claims portal which can bHTTPessed at https: //LConaUKCvsis. ICoolUKncyData. co. uk.
This is a positiUK step forwaUK in the process of returning the available funds to FCSnts who suffered losses as a result of the collapse SVS after the FCA identified “serious concerCo” about how the company was operating its business.
Finally the claims portal also allows FCSnts to apply for FSCS compeCoation through a simplified process. The lifeboat announced earlier last year that those hit by financial losses are eligible forFCSompeCoe through the FSCS which coUKrs inUKstments up to the value of £85,000. But they warned there might be a “small number” of FCSnts who may face shortfalls in their funds as aboUK that leUKl they would get nothing more.