Reyker Securities Plc (in Special Administration)
Mark Ford, Adam Stephens and Henry Shinners of Smith & Williamson LLP (“S&W”) 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 for Clients with Custody Assets and Corporate Action Income (CAI) – 30 April 2021
The JSAs continue to progress the Custody Asset transfers to the five Nominated Brokers. Approximately 90% of Reyker Clients with Custody Assets will transfer to one of these Nominated Brokers, and we have, to date, transferred around 94% of the Custody Assets (held by Reyker as at 14 December 2020) belonging to those Clients to these new brokers.
The assets still to transfer are either more complex and therefore will take longer to transfer and settle with Client’s Nominated Brokers or were held by Reyker in such a way that requires additional steps to be taken before they can be transferred.
Clients should continue to monitor their accounts with their Nominated Brokers to confirm once transfers have settled.
Working with Clients directly, and the FSCS and Investment Managers where appropriate, the JSAs helped more than 99% of eligible Clients meet their Transfer conditions.
All CAI received up to 18 March 2021 (previously 14 December 2020) and due to Transfer to a Nominated Broker has now been processed. The JSAs intend to action a further sweep of any CAI received up to 1 May 2021 to the Nominated Brokers during June 2021.
The JSAs continue to work towards completing the necessary arrangements for a sixth Transfer to a Nominated Broker. This transfer agreement will allow Clients with Innovative Finance ISAs (IF ISAs) to transfer to a nominated broker. The proposed Nominated Broker’s sub-custodian is still waiting for HMRC permissions in relation to holding the IF ISAs, and this is expected shortly.
The JSAs remain on target to start the return of Custody Assets to Clients that opted out of a Nominated Broker Transfer and those who do not have a Nominated Broker (i.e. CTFs or Clients residing in certain jurisdictions), by way of a Distribution Process, in Spring 2021. This will also include the Distribution of the respective Client’s CAI where applicable.
Clients who opted out but have not yet identified their new broker on their CARS should still do so via the Portal as soon as possible.
Clients are reminded that, due to the number of brokers receiving 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.
Update for Clients with Client Money – 30 April 2021
The JSAs are continuing to take steps to try to obtain instructions from all Clients who have not yet provided instructions in respect of their Client Money.
First interim distribution (first phase)
- Clients who submitted a claim to Client Money and a Client Money Instruction Form (CMIF) prior to 7 August 2020 were able to participate in the first phase of the first-interim distribution.
- The JSAs have completed the first phase of the first interim distribution with the exception of approximately 1,180 Client plans where additional information is required from Clients to either:
- Verify personal bank accounts designated by Clients to receive Client Money (where it was not possible to verify them via the electronic GBG check on the Portal); or
- Complete the distribution to their own choice of broker which may require additional information or forms to be completed by the Client before the designated broker will take receipt of funds; or
- Update previously submitted instructions to ‘hold Client Money until the Distribution Plan has been approved’ in order to confirm that their first-interim distribution can now be distributed to their Nominated Broker (or otherwise).
Clients who submitted a CMIF prior to the August 2020 deadline and are yet to receive their first-interim distribution should contact client services (contact details below) to confirm what additional action may be required from you.
Catch up first interim distribution (second phase)
If any Client has not yet submitted a Claim to Client Money or CMIF, this can still be done at any time through the Portal. Before submitting a CMIF, Clients should familiarise themselves with the terms and conditions of the distribution of the CMP which is available in the Client Money Distribution section of this website.
- Given the first phase of the first-interim distribution is materially complete (and good progress with regard to the Transfer of Custody Assets), the JSAs are finalising their preparations for a second phase of the first-interim distribution. This will take the form of a “catch-up” distribution for all Clients who did not submit their CMIF in advance of the August 2020 deadline or are still yet to do so.
- As before, the catch-up first interim distribution will mean participating Clients receive 85% of their Client Money or, alternatively, 80% if the respective Client is not a FSCS Protected Claimant (or is yet to be confirmed as such).
- Where Clients originally received only 80% of the first interim distribution and have subsequently been confirmed as being a FSCS Protected Claimant, the catch-up distribution will address this and ensure the additional 5% is distributed accordingly.
- The JSAs anticipate writing to all Client Money Clients who have not yet submitted a claim and/or CMIF in late May 2021 to provide formal notice of the catch-up first interim distribution and expect the respective distributions to commence from June 2021 (subject to Clients taking all required steps).
Final Client Money distribution and closing the Client Money Pool (“CMP”)
- Following the first and second phase of the first interim Client Money distribution, there will remain an outstanding balance of 15% of Client Money for the majority of participating Clients who are FSCS Protected Claimants and 20%, less their share of the CMP distribution costs, for those who are not FSCS Protected Claimants.
- Following legal advice, the JSAs have concluded that a final distribution should not be paid until such time that the CMP has been closed to claims in order to protect Clients, the Company and the JSAs.
- The effect of the CMP being closed is that any Client Money held for a Client who has not submitted a Client Money claim by the time of closure, will cease to be held as Client Money for that Client and will instead be set off against the costs of distributing the CMP. Any Client affected by the closure will, as a result, only have an unsecured claim against the Company.
- As no further claims are able to be admitted against the CMP once it is closed, the JSAs can then progress to distribute the final balance of Client Money due to all participating Clients and finalise the costs of it being paid out of the CMP.
- The JSAs can only close the CMP where they are able to satisfy the FCA and the Court that they have taken reasonable and proportionate steps to contact Clients who have not yet claimed, informed them of the proposed closure and the effect it will have and to return their respective Client Money.
- Accordingly, the JSAs have devised and begun implementing a detailed Client tracing program and disclosed the proposed course of action to the FCA. The level of tracing efforts will be tiered and proportionate to the value of the Client’s portfolio of Custody Assets and/or Client Money.
- In due course the JSAs will file an application in Court and with the FCA (for any Client Money Rules modification they require) in order to close the CMP in late 2021. Subject to Court availability and the relevant permissions being granted, Clients that have submitted their claim and distribution instructions may therefore receive the balance of their Client Money in the final quarter of 2021.
If you have not yet submitted a claim via the Portal and/or completed a CMIF you are strongly encouraged to do so as soon as possible as the JSAs will be taking steps later this calendar year to close the CMP to claims. This will mean you will lose your ability to claim your share of Client Money from the CMP.
- The global update for April 2021 and May 2021 takes the form of the JSAs’ progress report, a copy of which can be found here.
- Given several instances of fraudulent communications seeking advance payments from Clients have been reported, we continue to encourage you to remain vigilant and to exercise caution when dealing with correspondence regarding the Special Administration and/or Reyker.
- If you are in any doubt regarding the legitimacy of any communication regarding the special administration, please refer to the information provided on the dedicated webpage or contact client services directly on 0800 048 9512 or, alternatively, by email at firstname.lastname@example.org. Further information can also be found at https://www.fca.org.uk/consumers/protect-yourself-scams.
- If you have lost money as a result of a scam, you should contact Action Fraud on 0300 123 2040 or visit www.actionfraud.police.uk.
The JSAs have a dedicated telephone and email address for Clients and Creditors. These are:
- Telephone: 0800 048 9512
- Email: email@example.com
- Website: www.smithandwilliamson.com/reyker-securities-plc and www.ips-docs.com
Please note, given the volume of enquiries being received, it is not possible for us to respond to everybody’s individual enquiries, however, best endeavours are being undertaken to provide all Clients and Creditors with the latest information at this website. Where queries relate directly to the agreement of claims to Client Assets or the submission of Client Money Instruction Forms, we are seeking to respond to Client enquiries received by email within 48 hours.
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
A glossary of key terms used within our Client and Creditor communications and published herein can be found here.