Reyker Securities plc
Failed 17 March 2020
Reyker Securities plc (Reyker) was placed in Special Administration by its directors on 8 October 2019. Mark Ford, Adam Stephens and Henry Shinners all of Smith & Williamson LLP have been appointed as Joint Special Administrators of Reyker.
Reyker Securities plc is a fund custodian that holds and safeguards cash and assets on behalf of its clients.
Most client money and assets were successfully returned to the majority of customers via transfers to new brokers during 2021.
The Joint Special Administrators (JSAs) are continuing with efforts to transfer the remaining assets to new brokers. These assets are from the more difficult or unusual asset classes.
Efforts are also continuing to return client money to customers who have not yet lodged their claim to client money. There are also some customers who have confirmed their entitlement to client money but haven’t provided any payment instructions to the Joint Special Administrators.
There are no plans to close the Special Administration in the immediate future, but it will not remain open forever. Once the Special Administration closes, it will become much harder to achieve a return of most classes of money and assets. In some cases, it may no longer be possible to achieve any return at all.
So, we would encourage clients who are still to engage with the Special Administration, or who are yet to provide payment instructions, to do so at the earliest opportunity.
You can find out more by visiting the dedicated webpage at Smith and Williamson.
Contact the JSA’s team via Reyker client services on 0800 048 9512 or by email at firstname.lastname@example.org.
Download the determination papers (pdf 1.0MB)
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20 Jun, 2023
FSCS has concluded its investigation into Reyker’s discretionary fund management service (DFM). We anticipate there may be customers with valid claims for compensation for Reyker’s DFM service. Customers are welcome to submit DFM claims to FSCS and these will be assessed by our claims team.
FSCS is also able to process claims for Reyker’s Structured Product Plan 104 (FTSE 100 Supertracker Plan July 2015) in relation to the maturity date published by Reyker.
Claims involving bonds Reyker held for clients either directly or in ISAs and claims for the Optimus Retirement Benefits Scheme remain on hold while we continue our investigation into these activities.
13 Dec, 2022
Since our last update, we’ve reviewed a large number of Reyker’s documents and records. We’ve also been liaising with the Joint Special Administrators and third parties. This is to help us understand Reyker’s role in various transactions and the regulated activities it carried out. We need to understand this to determine whether Reyker's customers' claims for compensation are valid.
The focus of our investigation is on Reyker’s role in relation to
- discretionary fund management;
- a number of bonds held directly or in ISAs; and
- a qualifying recognised overseas pension scheme where investments are held in a Reyker investment portfolio.
FSCS is able to process claims against Reyker that relate to Reyker’s Structured Product Plan 104 (FTSE 100 Supertracker Plan July 2015) and the maturity date published by Reyker.
We appreciate the investigation process is taking some time to conclude and we will publish a further update when we can. Thank you for your patience while we continue with our investigation.
22 Apr, 2022
We’ve been investigating a number of issues in relation to claims against Reyker outside the Special Administration process. These include Reyker’s activities in relation to Discretionary Fund Management and a number of specific investments, including bonds. Our investigations are ongoing and we will publish a further update when we have more news.
We’ve also completed our investigations into a specific group of claims relating to Reyker’s Structured Product Plan 104 (FTSE 100 Supertracker Plan July 2015) and the maturity date published by Reyker. Claims in relation to this product have now been passed to our claims processing team for assessment.
28 Jun, 2021
Since the last Reyker update, the JSAs have made further progress in transferring the remaining assets to new brokers. The total volume of transferred assets is now more than 95% of the transferrable Custody Assets held by Reyker Clients with a Nominated Broker when it went into Special Administration. Work is ongoing in transferring the remaining assets as quickly as possible.
However, the outstanding transfers generally involve more complex assets. These can need further one-off arrangements, so progress is unavoidably slow. For those still waiting for some of their assets to transfer, we thank you for your patience. Everything possible is being done by the JSAs to bring matters to a conclusion as quickly as possible.
The process of returning Custody Assets to Clients that did not have a Nominated Broker or opted out of the proposed Transfer to a Nominated Broker will also start very soon. These Clients will receive further correspondence from the JSAs in the coming month.
Further updates are available on the JSA's website.
Given the progress in fulfilling the court-approved Distribution Plan, we can now look at some of the other possible issues following the failure of Reyker.
We have now opened our online claims service. Customers who wish to make further claims regarding Reyker (other than for the simple return of money and assets) should click on the link or the ‘Check you can claim’ button.
This is likely to apply to those who feel that the return of assets and money will not address the losses they’ve suffered, and who consider that Reyker is to blame.
Note that FSCS cannot compensate clients whose losses arise from an inability to sell assets or settle transactions during the Special Administration. We also cannot compensate clients for poor investment performance alone.
If an FCA-authorised adviser that’s still trading gave you the advice to invest in an unsuitable product where Reyker acted as custodian, you need to complain to the adviser first. If your adviser rejects your complaint, you can take your complaint to the Financial Ombudsman Service.
If an FCA-authorised adviser that’s now not trading advised you to invest in an unsuitable product where Reyker acted as custodian, you should submit a claim to FSCS about your financial adviser.
It’s completely free to make a claim for compensation with FSCS if you claim with us directly.
There continue to be instances of fraudulent communications seeking advance payments from clients. Please be vigilant and exercise caution when dealing with correspondence about the Special Administration and/or Reyker.
If you doubt the authenticity 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. Alternatively, by email at email@example.com. Further information can also be found on the FCA's scams page.
12 Feb, 2021
We’re happy to report that on 29 January, the Joint Special Administrators (JSAs) of Reyker Securities PLC (“Reyker”) began transferring Reyker’s customers’ assets to new brokers.
Either your existing investment manager or your newly-designated broker will be in touch with the next steps.
The transfer of securities that are held electronically is already well underway.
If you are a client of the brokers James Brearley and Logic, you can see your CREST securities in your online account.
If you’re a customer of another broker, your share transfer forms have either already been submitted to the new broker for re-registration, or will be submitted soon.
The whole process of transferring assets will take several more weeks overall. You can find a more detailed timeline on the Smith and Williamson website.
We’ve established that we will now cover the costs of the Special Administration for almost every customer. This means that FSCS-protected customers can have their assets transferred to the new broker without any deduction by the Joint Special Administrators.
We understand that it might have been difficult and distressing for many customers since Reyker went into Special Administration 8 October 2019. Now, customers can rest assured that this difficult period is coming to an end.
Note: we have come across several instances of fraudulent communications associated with the Reyker Special Administration. Please be aware of with correspondence regarding the Special Administration.
27 Oct, 2020
Update – distribution plan
The High Court has now approved the Distribution Plan for Reyker Securities plc (“Reyker”).
The Joint Special Administrators (JSAs) will soon be writing to Clients confirming the approval of the Distribution Plan and who the Nominated Brokers will be.
After this, the JSAs will send customers a Client Asset Return Statement in a separate letter. This will detail all the assets and recently received money to be returned.
We expect to find out the timescales over the coming weeks.
You can find further details on the JSAs' website: https://smithandwilliamson.com/en/services/restructuring-and-recovery-services/reyker-securities-plc/
Transfer of assets
Most customers will be able to transfer to one of the 5 new brokers without any deduction from their money and assets. This will happen automatically – you don’t need to apply to FSCS for compensation.
The FSCS will pay up to £85,000 per customer for the costs of the Special Administration. All customers who are individuals are FSCS eligible. We’re also working with non-individual customers to check whether they can claim through FSCS too.
If your portfolio value is more than £85,000, you need to flag your specific request to claim compensation in the JSAs’ portal. If your portfolio’s value is more than £85,000, and you don’t claim compensation in this way, you’ll have to pay your share of the costs of the special administration before your assets can be transferred to a new broker.
Some former Reyker customers may want to make a claim if they blame Reyker for any losses that haven’t been addressed by the return of funds.
When we’re ready to process these claims, we’ll post an update to this page. This will probably be in the next couple of months.
If your losses are because you couldn’t sell assets or settle transactions during the Special Administration, we can’t compensate you. We also can’t compensate you for poor investment performance alone.
Remember – you can make claims for free if you claim through us directly.
Be aware – fraud
Working with the special administrators we have come across several instances of fraudulent communications associated with the Reyker Special Administration.
Please be careful when dealing with correspondence regarding the Special Administration.
08 Oct, 2019
The Special Administrators will carry out an assessment of the client money and assets held by the firm. After this, the Special Administrators will work to return as much client money and assets to customers as possible, as quickly as possible.
If there's not enough client money or assets, FSCS will cover asset and client money shortfalls. This will include any distribution costs back to clients, for eligible customers up to our compensation limit of £85,000.
At this stage, there is no need for customers to make a claim with FSCS.
Throughout this process, FSCS will be working closely with the Special Administrators and will provide updates at regular intervals. Customers should subscribe above to receive the latest updates.
Although Reyker is in special administration, FSCS will still accept claims for compensation against Merchant Capital Ltd in relation to fees charged by Reyker, following the failure of Merchant Capital in 2013.
09 Sep, 2020
The Joint Special Administrators (JSAs) are making good progress with distributing the first round of money back to clients. The first priority is returning assets back to those who returned their Client Money Instruction Form before the deadline of 7 August 2020.
The JSAs have so far paid approximately 80% of the 8,834 Client plan instructions received. The JSAs have written to customers that they need more information from.
On 13 August 2020, the JSAs wrote to all customers about the Distribution Plan and Court process. If Reyker held client money or assets for you, and you still haven’t received that letter, please contact them.
The Distribution Plan, which sets out the terms for the return of customers’ property, will be heard by the Court on 16 October 2020.
You don’t need to attend the Court hearing, or do anything before the Court date.
If the Court approves the Distribution Plan, customers’ assets will be returned through a series of partial transfers to several regulated brokers.
Please be aware of fraudsters pretending to be Reyker and/or the Joint Special Administrators. These emails or calls might ask you to make a bank transfer to release your assets.
If you think you’ve received communications like this, please follow the guidance on the Reyker page of Smith and Williamson’s website.
29 Jun, 2020
The JSAs’ strategy is to return assets to clients through a series of transfers to 5 different brokers. In parallel, the JSAs are also looking to make a partial distribution of client money before the asset transfer.
The JSAs arrived at this strategy following the withdrawal, in early April, of a potential purchaser. The original strategy was to return assets through a single, wholesale transfer to this one broker.
The JSAs have made clear that their new strategy takes account of three things:
- the need to reunite customers with their client money and assets as soon as possible,
- the situation with the COVID-19 pandemic and
- the wishes of intermediary providers who represent a large chunk of the clients.
FSCS is currently working with the JSAs on a distribution plan and funding agreement. This will allow the transfer of assets to new brokers. It will also allow the costs of the Special Administration to be agreed and paid (on behalf of FSCS eligible customers) to the JSA in a sensible and efficient way.
Any client that has NOT yet accessed the Reyker Portal to review and confirm their client account balance AND their desire to claim FSCS compensation should do so as soon as possible at https://www.reykerportal.com/login
The Distribution Plan will be subject to approval by the Creditors Committee and the court. We share the ambition of the JSA for a court date in July but recognise that this could be challenging.
Client money can be returned to customers without the need for a court process. The JSAs now intend to proceed with a distribution of a substantial percentage of the client money balances held by Reyker. This will take place before the return of assets. FSCS anticipates that the JSAs will release more details of how to take part in the distribution soon.
The JSAs have emphasised on their website that there are fraudulent communications in circulation. Fraudsters are using fake website domain names or email addresses to impersonate Reyker, usually requesting an upfront bank transfer to release assets.
FSCS would like to join the JSAs in stressing the importance of vigilance. More details on what to do if you suspect a scam can be found on the Reyker page of Smith and Williamson’s website.
10 Mar, 2020
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, FSCS plans to pay compensation to meet the costs of the special administration for each eligible customer, up to £85,000. We intend to pay this to the JSAs directly, so customers will not receive payment from FSCS.
You don’t need to contact FSCS to make this happen or to make a claim – where we can pay compensation to enable a transfer, we aim to do so automatically.
FSCS compensation is paid subject to our terms and conditions.