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) – 12 July 2021
- The JSAs are pleased to advise that the transfer of Custody Assets, Corporate Action Income and Pre-Pooling Cash (for those Clients that had selected, in Summer 2020, for their 85% of Pre-Pooling Cash to be sent to their Nominated Broker once confirmed) is practically complete.
- To date, more than 98% of transferrable assets have been Transferred and are now held with the respective Nominated Broker or instructions have been issued and the Transfer is in process.
- The JSAs are working with the Nominated Brokers to finalise the transfer of the very few remaining stock lines, each of which will require a bespoke solution in order to overcome specific challenges. We will provide an update on some of the more commonly held securities in next month’s update.
- Clients should continue to monitor their accounts with their Nominated Brokers to confirm once transfers have settled.
- All CAI received up to 30 June 2021 (previously 18 March 2021) and due to Transfer to a Nominated Broker has now been processed with the exception of CAI due to transfer on behalf of Clients whose intermediary Investment Manager was Ingenious). The JSAs await further instructions from Ingenious before such transfers can be processed.
- The JSAs intend to action a further sweep of any CAI received and allocated to Client ledgers in the period from 1 July 2021 up to 31 July 2021 during August 2021 and periodically thereafter.
- The JSAs have now started the return of Custody Assets to Clients that opted out of their Nominated Broker transfer and have provided their new broker details via the Portal. The JSAs will write to Clients informing them of the instructions being issued for the Distribution of these Custody Assets.
- The JSAs have recently written to Clients who opted out but have not yet identified their new broker on their CARS to request instructions and in the meantime encourage Clients who have not already provided details of their selected broker to 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 Custody Assets held in an Innovative Finance ISA (IF ISA) – 12 July 2021
- I regret to inform Clients that the proposed sixth Transfer to a Nominated Broker, for Clients holding Custody Assets or Client Money in an Innovative Finance ISA, will not now be proceeding. We have recently been informed by the proposed Nominated Broker that they will not be proceeding.
- We will be writing to affected Clients very shortly with an update and setting out their next steps.
Update for Clients with Client Money – 4 June 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 still 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 information or action has been requested of you and is still required from you before the distribution may be paid.
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.
- The JSAs issued a letter in May 2021 providing notice of a “catch-up” first interim distribution for all Clients who did not submit their CMIF in advance of the 7 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 have requested Clients submit their CMIF before 17.00 hours on 18 June 2021 in order to ensure they receive their catch-up distribution at the earliest opportunity.
- The JSAs expect the second phase of payments for the first interim distribution to commence shortly following 18 June 2021 and, subject to receipt of complete and accurate information before the deadline, the majority of catch-up distributions should be completed before the end of July 2021.
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. At present, it is anticipated there will be no return for unsecured creditors.
- 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.
- The first formal notice of the JSAs intention to close the CMP to claims was provided in the recent letter sent to all Clients that are yet to submit a claim to Client Assets and/or a CMIF.
- Clients that have not yet submitted a claim have also been contacted and given notice of the closing of the CMP by email and telephone where Reyker held such contact details.
- The Client tracing programme has, so far, reduced the number of Clients that have not submitted a claim to Client Money from 1,439 to 1,067.
- 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 November or December 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 July 2021 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.