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 will be used to provide clients and creditors with information and will be updated when additional information becomes available regarding the Special Administration of Reyker. You can also find additional information at www.fscs.org.uk and https://www.fscs.org.uk/failed-firms/reyker-securities/

Update message for all of Reyker’s clients and creditors – 19 December 2019

A meeting of Reyker’s clients and creditors was held on Monday 16 December 2019 at which the following resolutions were passed by both the clients and creditors present (in person or by proxy) by a significant majority:

  • Resolution 1 – THAT the JSAs’ Proposals (as previously circulated) are approved; and
  • Resolution 2 – THAT a clients’ and creditors’ committee be established.

Client and creditor voting is summarised below:

Voting by Clients on 16 December 2019:

Resolution For (£) Against (£) Outcome
1 – JSAs’ Proposals 222,108,679 217,176 Passed – 99.90%
2- Committee 222,014,165 296,690 Passed – 99.87%

Voting by Creditors on 16 December 2019:

Resolution  For (£) Against (£) Outcome
1 – JSAs’ Proposals 311,635 - Passed – 100%
2- Committee 311,635 - Passed – 100%


Following the resolutions being passed, nominations for the members of the creditors’ and clients’ committee were received and considered. Following a consultation between the many nominees, a consensus was agreed and four clients (or client representatives) and the FSCS each made a short introduction of themselves to the meeting attendees. The nomination of these five proposed committee members was duly agreed (in accordance with statute) with no objections from those present at the meeting.

Minutes of the clients’ and creditors’ meeting and the slides accompanying the JSAs’ presentation are available to view by following the respective links on this page.

Next steps

The JSAs aim to complete the reconciliation of all Client Assets by mid-January 2020 at the latest.

Separately, the JSAs are reviewing the best and final offers received for Reyker’s business and expect to share details of their preferred transferee with the regulatory bodies this month with a view to being able to significantly advance negotiations of the detailed contractual terms upon which those assets may be transferred in January 2020.

In parallel, the JSAs’ are developing a bespoke client portal for the purpose of clients agreeing their final claim to Custody Assets and Client Money which will facilitate the implementation of a Bar Date and Distribution Plan and the safe transfer of Client Assets to the transferee, being a new regulated broker. Such a process remains subject to successfully concluding the aforementioned negotiations and the proposed transferee being willing and able to receive a wholesale transfer of all Client Assets.

Further detail in respect of the JSAs’ strategy and the anticipated timeframe for the transfer of Client Assets is available in the JSAs’ Proposals and the JSAs’ presentation dated 16 December 2019.

The first meeting of the Clients’ and Creditors’ Committee will be held in January 2020.

Key documents relating to the Special Administration, including the JSAs’ Proposals, can be viewed and downloaded either by using the respective link on this page or, alternatively, by going to www.ips-docs.com and entering the log-in details previously circulated to all known clients and creditors.

Financial Services Compensation Scheme (“FSCS”)

We recognise that the return of assets will be a key concern to clients. We continue to liaise with the FCA and FSCS in respect of the progress of the administration and potential claims that may arise from clients in the event there is any shortfall in assets returned to clients. Our initial assessment is that, if and where the costs of the process are met from client holdings, the majority of eligible clients will be covered by the FSCS compensation scheme. Further information can be found on the FSCS website www.fscs.org.uk/failed-firms/reyker-securities/ and information on eligibility may be found at https://www.fscs.org.uk/how-we-work/eligibility-rules/

It is our present intention to work with the FSCS so that any compensation due to eligible clients may be paid direct to the JSAs and in advance of any transfer to the New Regulated Broker. This will, hopefully, mitigate the need for any eligible client to submit a claim to the FSCS themselves and facilitate a transfer of each eligible clients’ assets in whole.

Contact

The JSAs have a dedicated telephone and email address for affected parties. These are:

Office closure

Please note, the Reyker office and client services desk will be closed with effect from 24 December 2019 to 1 January 2019 (inclusive). Any calls or emails sent to 0800 048 9512 and reyker.securities@smithandwilliamson.com will, therefore, not be processed until the New Year.

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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