SVS Securities compensation process finally ends with the firm’s move to dissolution

SVS Securities was a company that provided trading services in CFDs, stocks, IPOs, corporate finance, and more, and it was regulated and authorized by the FSA (Financial Services Authority). However, in August 2019, the company was placed under special administration after collapsing, which started a long compensation process that has lasted forever, three and a half years now.

As of March 30th, the process was finally stopped as SVS Securities was moved from special administration to dissolution.

What happened with SVS Securities?

SVS’ Joint Special Administrator, Andrew Poxon, noted that the special administration that started on August 5th, 2019, is now being concluded. The end of the administration actually came quite late, as it was originally expected in early 2022.

However, the timeline ended up being delayed after special administrators received the court order to end oversight earlier this month. Furthermore, the administrators have also applied for a cancellation of the company’s registration with the FCA (Financial Conduct Authority).

As mentioned, the company offered a wide range of trading services, as well as multiple investment management services back when it was still operational. Some examples include advisory and brokering execution, an institutional desk, IPO Private equity services, and more.

However, the FCA decided to stop its business due to concerns involving the company’s operations. It also decided that it would be best to place the firm under special administration in 2019.

ITI Capital experiences problems while transferring SVS clients

Another London-based company that offers financial advice and investment services, ITI Capital, made a move to buy SVS’ client books. The administrators enabled the transfer of platforms, and they also highlighted their role as intermediaries for resolving client queries during the period of migration.

Unfortunately, the process did not go as smoothly as expected. In fact, ITI reported facing a number of technical difficulties when it came to onboarding clients from SVS Securities. The process resulted in many distressed clients, and some of them were so unsatisfied with the situation that they even sent complaints to the FCA regarding the process.

What seemed like a great opportunity for ITI Capital at first ended up being so chaotic that it forced the company to exit the retail business entirely in 2022.

Interestingly, SVS administrators noted that more than 99% of SVS clients were actually successfully transferred to ITI via a single bulk transfer that took place back in June 2020. Only 111 SVS clients ended up not being eligible for transfer to ITI. These individuals were later dealt with outside. Lastly, only around eight SVS clients did not receive the full compensation during the process, which includes five corporate clients.

The reason for this is the fact that their deposits were too large, and they exceeded the FSCS limit. With all of this being the case, it was officially concluded that Special Administration is, for all practical purposes, complete.