The Scheme plans to pay compensation to meet the costs of the special administration for each eligible customer, up to £85,000.
The UK Financial Services Compensation Scheme (FSCS) has earlier today posted an update for customers of Reyker Securities wich entered into administration in October 2019.
The Joint Special Administrators (JSAs) have now contacted customers of Reyker inviting them to make claims to client money and assets via an online portal. This is the next stage in returning property to Reyker’s customers.
FSCS is working with the JSAs to try to enable eligible customers’ holdings to transfer whole to a new broker, without deduction of the special administration costs.
For this to happen, the Scheme plans to pay compensation to meet the costs of the special administration for each eligible customer, up to £85,000. FSCS intends to pay this to the JSAs directly, so customers will not receive payment from FSCS.
Customers do not need to contact FSCS to make this happen or to make a claim – where FSCS can pay compensation to enable a transfer, it aims to do so automatically.
The administrators have set a bar date of 17.00 hours on April 7, 2020, being the deadline by which clients must submit a claim to their Client Assets. Clients must submit a claim using the Client Claim Portal which is now live and can be accessed at https://reykerportal.com.
For all clients who do not submit a claim via the Portal by the Bar Date, the administrators 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.
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 administrators continue to accommodate their information requests as part of contract negotiations.
Once an exchange of contracts has taken place, the administrators 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. Any transfer of Client Assets cannot be implemented sooner than July 7, 2020.