SVS Securities administrators want FCA authorization revoked

SVS Securities wants to cancel its authorization by the UK financial market regulator, the Financial Conduct Authority (FCA). The joint special administrators of this brokerage platform want to ensure that SVS Securities can no longer conduct regulated activities.

SVS Securities want FCA approval revoked

SVS Securities was a leading brokerage platform that provided access to various financial assets such as stocks, contract for differences (CFDs), initial public offerings (IPOs), and corporate finance. The company offered services to UK consumers under the regulatory authority of the FCA.

SVS Securities also provided investment management services, including an institutional desk, advisory, brokering execution, and IPO private equity services. However, the FCA expressed concerns about the broker’s operations and was placed under special administration in August 2019. The FCA barred the broker from offering services.

The services offered by SVS Securities have already been transitioned to other brokerage platforms. ITI Capital, a financial advisory and investment services firm based in London, acquired the client books from SVS. The administrators later facilitated the transfer of services between the two companies.

However, ITI Capital faced technical challenges when onboarding the clients of SVS Securities. This resulted in some clients facing distress regarding their accounts, with some filing complaints with the FCA. The challenges faced by ITI Capital forced the brokerage platform to exit the retail business in 2022.

SVS administrators’ tenure reaches an end

The joint special administrators in charge of the operations of SVS Securities will relinquish their roles. The administrators have filed a court order that plans to end the special administration oversight of SVS Securities.

The court order submitted by the administrators of the failed broker will be heard around March 15, 2023, by the United Kingdom Court of Justice. It was earlier anticipated that the tenure of the special administrators at SVS Securities would end in early 2022 because they have fulfilled most of the tasks for which they were appointed.

Most clients and creditors at the failed brokerage platform have already been compensated. However, these administrators have requested the clients that are yet to reach out to the administrators regarding the return of client assets or money to reach out to them to ensure that a settlement is reached will all aggrieved parties.

The administrators have also said that creditors and clients are welcome to attend the court hearing on ending the administrative oversight of SVS Securities. The administrators have also added that they will file for the revocation of the FCA approval before the date of the court hearing on relinquishing its role at the broker.

Last week, the notice released by the administrators said, “Clients and creditors are not required to attend the Court hearing but may do so if they wish. If any clients or creditors wish to obtain further details regarding the hearing with a view to attending the hearing or otherwise, they should contact the Administrators.”