FSCS enables Reyker Securities clients to access their assets
Most of the 11,500 former clients of wealth management firm Reyker Securities plc (“Reyker”) have regained access to their assets.
The Financial Services Compensation Scheme (FSCS) worked closely with the Joint Special Administrators (JSAs) at Smith & Williamson to ensure that assets were returned as quickly and as smoothly as possible.
Reyker had 11,500 customers when it went into Special Administration in October 2019. At the end of January 2021, the JSAs of Reyker began transferring customers’ assets to five new nominated brokers, and the vast majority have now had most, if not all, of their assets returned. To date, over 90 per cent of the assets able to transfer to the brokers have transferred or have been instructed for transfer – representing more than 80 per cent of the total holding of those 11,500 customers.
A small number of customers may still have to wait a bit longer before some assets can be transferred to their new broker. These are mainly assets that require third-party input, such as registrars, as part of the transfer process. In particular, transferring paper certificates is more challenging in light of current restrictions due to the pandemic.
Most customers have had their Special Administration costs met by FSCS. FSCS protection has also been available to most small companies and some corporate clients holding assets for underlying eligible customers.
FSCS can pay compensation of up to £85,000 to the customers of a failed investment firm who have lost money because of regulated advice to invest with that firm. In a Special Administration, FSCS can meet the costs of the Special Administration on behalf of eligible customers. The costs of the Special Administration could otherwise be deducted from customers’ money and assets.
FSCS’s involvement has allowed most of Reyker’s customers to transfer to the new brokers without any deduction from their assets.
Jimmy Barber, Chief Operating Officer at FSCS, said: “We want to thank Reyker’s customers for their patience as we recognise that it has been an extremely difficult and distressing time for them since Reyker went into Special Administration. The vast majority have now had their assets returned and we are working to ensure that the remaining few with cases that are more complex are transferred to their new broker as soon as possible.
“We also want to thank the team at Smith & Williamson for ensuring the smooth transition of assets.”
Reyker Securities plc is a fund custodian that holds and safeguards cash and assets on behalf of its clients. The firm was placed in Special Administration by the High Court following an application by its directors on 8 October 2019.
James Tweed T: 020 7375 8646
Anthony Ozimic T: 020 7375 8638
Notes for editors
Read more about the remit of FSCS on our Notes for editors page.