Reyker Securities Plc (in Special Administration)

Mark Ford, Adam Stephens and Henry Shinners of Smith & Williamson LLP were appointed Joint Special Administrators (“the JSAs”) of Reyker Securities Plc (in Special Administration) (“Reyker”) on 8 October 2019.

This website provides Clients and Creditors with important information and will be updated when additional information becomes available regarding the Special Administration of Reyker.

Update message for the Company’s Clients and Creditors – 9 March 2020

Headlines

  • Clients are now required to take action.
  • The JSAs have set a bar date of 17.00 hours on 7 April 2020, being the deadline by which Clients must submit a claim to their Client Assets (being Client Money and / or Custody Assets).
  • Clients must submit a claim using the Client Claim Portal (“the Portal”) which is now live and can be accessed at https://reykerportal.com.
  • To log-in to the Portal, Clients will need their Client ID and unique password sent to them in the post on 6 March 2020. If you have not received a letter by 13 March 2020 or, alternatively, do not have access to the internet, please contact Client Services on 0800 048 9512 or at clientservices@reyker.com.
  • The FSCS has applied its power under COMP 3.2.1A of the FCA Handbook and will treat all Clients with total Client Assets of less than £85,000 (as at 8 October 2019) as if they have made a claim for FSCS compensation. Clients with total Client Assets equal to or greater than £85,000 (as at 8 October 2019) will need to confirm whether they wish to submit a claim for FSCS compensation via the Portal.
  • An exchange of contracts is yet to take place for the sale of the Company’s business and assets, however, the proposed purchaser and its legal team remain engaged in the process and the JSAs continue to accommodate their information requests as part of contract negotiations.
  • Once an exchange of contracts has taken place, the JSAs will be preparing the Distribution Plan (a statutory document required to facilitate the transfer of Custody Assets) in conjunction with their solicitors and seeking the requisite approvals from the Clients’ and Creditors’ committee and the court.
  • The Regulations and the Rules state that the transfer of Custody Assets may not take place sooner than three months from the Bar Date. This means any transfer of Client Assets cannot be implemented sooner than 7 July 2020.

Global update

A brief update on the progress of the Special Administration since 14 February 2020 has been added to the website (dated 6 March 2020). We will look to add further updates on a monthly basis. We encourage all Clients to take the time to read this document as it provides more detail on the summary that follows below.

Key points:

  • The JSAs continue to pursue the strategy of transferring Client Assets to a single regulated broker by way of one wholesale transfer and sale. This is the quickest and most cost-effective way for Client Assets to be returned to Clients. The legal process is different should Client Assets be transferred to more than one broker which we believe would add delay and increase costs.
  • Following the review part of the reconciliation, the JSAs have prioritised resolving minor discrepancies which may have impacted upon the Client Asset balances shown on Client statements as at 8 October 2019 (the date of the JSAs’ appointment). Based on the information presently available, the JSAs believe all such discrepancies have been resolved and, in a minority of cases, statements adjusted to reflect this.
  • The JSAs have set a bar date of 17.00 hours on 7 April 2020, being the deadline by which Clients must submit a claim to their Client Assets (being Client Money and / or Custody Assets).
  • Clients must submit a claim using the Portal which is now live and can be accessed at https://reykerportal.com. A helpful user guide and updated ‘frequently asked questions’ document has been added to this site to assist with the claims process.
  • For any Client who does not submit a claim via the Portal by the Bar Date, the JSAs intend to effect the transfer of assets to the purchaser based on the Company's records in accordance with the Regulations. This means that any Client who does not submit a claim will lose the opportunity to dispute any of the holdings shown on the Portal. You are therefore strongly encouraged to submit your claim before the Bar Date
  • An exchange of contracts is yet to take place for the sale of the Company’s business and assets, however, the proposed purchaser and its legal team remain engaged in the process and the JSAs continue to accommodate their information requests as part of contract negotiations. The JSAs and their solicitors consider it in the interests of all Clients and other stakeholders to issue notice of the Bar Date in order that the negotiations and Client claims process can progress in parallel.
  • Once an exchange of contracts has taken place, the JSAs will be preparing the Distribution Plan (a statutory document required to facilitate the transfer of Custody Assets) in conjunction with their solicitors and seeking the requisite approvals from the Clients’ and Creditors’ committee and the court. The Regulations and the Rules state that the transfer of Custody Assets may not take place sooner than three months from the Bar Date. This means any transfer of Client Assets cannot be implemented sooner than 7 July 2020.

Financial Services Compensation Scheme (“FSCS”)

As previously reported, the costs of pursuing Objective 1 of the special administration (i.e. the return of Client Assets) are paid from Client Assets and, therefore, Clients who don’t receive FSCS compensation may receive a shortfall in their Client Assets following a deduction of their share of the costs.

We have been liaising closely with the FSCS in order to streamline the process by which eligible Clients may receive compensation in order to mitigate the need for an eligible Client to submit a claim direct to the FSCS themselves and, where possible, to ensure Client Assets are transferred to the proposed purchaser whole.

Accordingly, the FSCS has confirmed that it has applied its power under COMP 3.2.1A of the FCA Handbook and will treat all Clients with Client Assets with a total value of less than £85,000 as at 8 October 2019 as if they have claimed compensation. This means:

  • Subject to the total value of your Client Assets being less then £85,000 as at 8 October 2019, you will automatically be treated as having submitted a claim for compensation from the FSCS and you do not need to take any further action in this regard. The JSAs are in the process of reviewing each Client’s eligibility jointly with the FSCS;
  • Clients who have Client Assets with a total value as at 8 October 2019 either equal to or greater than £85,000 will not be treated as having automatically claimed compensation from the FSCS. Such Clients are asked as part of the online claims process to confirm whether they wish to submit a claim for FSCS compensation or not.

The Portal automatically determines which of the above categories you are deemed to fall into as part of the ‘Declaration’ and claim submission process and you will only see options that are relevant to you.

The FSCS can pay up to £85,000 per eligible Client for claims in respect of Reyker Securities plc (in special administration), including those in respect of their share of the Objective 1 costs. Our initial assessment is that, the majority of clients will be eligible for cover from the FSCS compensation scheme. Further information on eligibility criteria may be found at https://www.fscs.org.uk/how-we-work/eligibility-rules/.

Where Clients are either deemed to have claimed or, alternatively, select to claim compensation from the FSCS and it is subsequently determined that they are not eligible in accordance with the FSCS’ eligibility criteria, the JSAs will shortly write to all such Clients to confirm the options available with regard to meeting their share of the costs.

 

Next steps

Clients are required to take action by the Bar Date, being 17.00 hours on 7 April 2020.

If you are a Client, you must log on to the Portal using the unique password we have sent to you in the post and submit your claim to Client Assets held by the Company on your behalf as at 8 October 2019.

If you have not received a letter confirming your unique password by 13 March 2020, please contact Client Services as a matter of urgency on 0800 048 9512 or, alternatively, by email at clientservices@reyker.com.

A helpful user guide and updated ‘frequently asked questions’ document has been added to this site to assist with the claims process.

Contact

The JSAs have a dedicated telephone and email address for Clients and Creditors. These are:

Please note, given the volume of enquiries being received, it is not possible for us to respond to everybody’s individual enquiries, however, best endeavors are being undertaken to provide all Clients and Creditors with the latest information at this website.

For all press related queries please contact Mark Gee on 0207 131 4597.

The affairs, business and property of Reyker are being managed by the Joint Special Administrators who act as agents of the Company, without personal liability. Mark Ford, Adam Stephens and Henry Shinners are authorised to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales. Reyker remains authorised and regulated by the Financial Conduct Authority. FCA reference number 115308. Registered in England No. 01747595

 

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