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 – 8 April 2020

Headlines

COVID-19 response

  • Following the latest UK Government advice regarding COVID-19 and in the interests of the health and wellbeing of both Reyker and the JSA’s employees and contractors, their families and the wider community, the JSAs have temporarily initiated a business continuity plan to enable the aforementioned to work from home.
  • The present pandemic has not impacted upon the ability of the JSAs, their staff and Reyker employees and contractors to perform their duties and responsibilities in the best interests of the Company’s Clients, Creditors and other stakeholders notwithstanding this happening at the busiest time for dealing with client queries.
  • Custody Assets and Client Money remain safeguarded by the JSAs and we are continuing to work to return these to Clients as quickly as possible.
  • All incoming post continues to be received and processed by the post room at S&W which is presently operating with a skeleton staff. There may, therefore, be a short delay in responding to such correspondence and, therefore, Clients and their representatives are strongly encouraged to direct any queries to Client Services by email (clientservices@reyker.com) or telephone (0800 048 9512) where possible.

Return of Client Assets

  • The Bar Date for Client claims was 17.00 hours on 7 April 2020 which has now passed. As at the deadline, 70% of Client claims had been agreed and submitted.
  • The JSAs are mindful and sympathetic to recent global events and, accordingly, will continue to keep the Portal open and allow Clients to submit their claim for a further limited period of time. Any Clients that have not yet submitted a claim are strongly encouraged to do so either on or before 24 April 2020. The Portal can be accessed at https://reykerportal.com.
  • On 1 April 2020, the proposed purchaser confirmed that it wished to withdraw its offer for the Company’s business and assets. Whilst undertaking contract negotiations with the proposed purchaser, the JSAs have, in parallel and in accordance with the terms of the acceptance of the proposed purchaser’s offer, been able to continue to market the business for sale and maintain a dialogue with the underbidders although a sale contract has not been issued to any of these underbidders. The JSAs continue to work closely with all interested parties and these discussions are ongoing.
  • The JSAs still firmly believe that a wholesale transfer to a single purchaser and / or regulated broker, if possible, represents the best outcome for Clients but, following the proposed purchaser’s withdrawal are also continuing discussions with parties that have indicated that although they would not consider a wholesale transfer could accept large volumes of Client holdings and therefore simplify and streamline any (non-wholesale) return of Client assets.
  • The JSAs progress report for the first six months of the Special Administration is to be made available to all Clients and Creditors on this website with effect from 7 May 2020.

Global update

A brief update on the progress of the Special Administration since 6 March 2020 has been added to the website (dated 8 April 2020) and can be found here.
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.

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 not eligible for or choosing not to claim FSCS compensation may receive a shortfall in the Client Assets to which they lay claim following the deduction of their share of these costs.

Our recent communications advised that the FSCS had exercised 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:

  • All Clients with Client Assets totalling less then £85,000 as at 8 October 2019 have automatically been treated as having submitted a claim for compensation from the FSCS and they do not need to take any further action in this regard;
  • Clients who have Client Assets totalling either equal to or greater than £85,000 as at 8 October 2019 will not be treated as having automatically claimed compensation from the FSCS and, therefore, were required to indicate through the Portal as to whether they wish to submit a claim for FSCS compensation or not.

Please note, the Portal automatically determines which of the above categories Clients are deemed to fall into as part of the ‘Declaration’ and claim submission process and Clients only see options that are relevant to their own holdings.

We have continued to work closely with the FSCS in order to streamline the process by which eligible Clients may receive compensation and would note:

  • Clients with Client Assets totaling equal to or greater than £85,000 as of 8 October 2019 and who have not yet submitted a claim to either Client Assets or for FSCS compensation should access the Portal and submit their declaration at the earliest opportunity. Although the Bar Date has passed, we are continuing to allow Clients to submit their claim for a further limited period of time; and
  • The JSAs have recently written to the Company’s non-individual, corporate Clients who may not be eligible for FSCS compensation requesting that they complete and return an eligibility assessment form in order that the FSCS can make a final determination in this regard. Clients that have been asked to complete the form, should return it:

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. 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 write to all such Clients to confirm the options available with regard to meeting their share of the costs.

Next steps

As highlighted in our global update:

  1. Clients that have not yet submitted a claim to Client Assets are strongly encouraged to do so by 24 April 2020. Although the Bar Date has now passed, the JSAs will continue to keep, at their discretion, the online Portal open for a further limited period of time.
  2. Corporate Clients that may not be eligible for FSCS compensation should complete the eligibility assessment form recently issued and return it to reyker.securities@smithandwilliamson.com.
  3. The JSAs will continue to negotiate with interested parties in order to affect a wholesale transfer of Client Assets to a single purchaser where possible and, in parallel, continue to contingency plan for a scenario where this is not possible; and
  4. The JSAs will, in collaboration with their legal advisors, continue to draft a Distribution Plan which will cover all eventualities with a view to achieving a transfer of Custody Assets at the earliest date possible.

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

Glossary

A glossary of key terms used within our Client and Creditor communications and published herein can be found here.

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