Administrators of Reyker Securities confirm first interim distribution to be paid in August

Source: FinanceFeeds 2020-07-15

Clients eligible for FSCS compensation will receive the full 85p in the £.

The joint special administrators of Reyker Securities have published an update for the company’s clients and creditors.

Thee administrators confirm that a first interim distribution of client money will be paid during August 2020 to all clients who hold a Client Money balance with Reyker and have submitted a Client Money Instruction Form by 17.00 hours (GMT) on August 7, 2020.

The first interim distribution will be paid to all participating clients in the sum of 85p in the £. Clients eligible for Financial Services Compensation Scheme (FSCS) compensation will receive the full 85p in the £, however, for FSCS ineligible or potentially ineligible Clients, the JSAs need to maintain a reserve for their share of the costs of the special administration which means that the amount they will actually receive will be 80p per £.

Clients eligible for FSCS compensation, which is more than 98% of Reyker’s clients, are still expected to receive 100% of their client money in due course.

A letter has been issued to all clients with Client Money balances (dated 10 July 2020) requesting clients to log on to the Portal at www.reykerportal.com (which has been further developed for the purpose of the Client Money distribution) and submit a Client Money Instruction Form by 17.00 hours (GMT) on 7 August 2020.

Those clients who submit a Client Money Instruction Form after this time will not be able to participate in the first interim distribution of Client Money and their share of Client Money will be safeguarded under the JSAs’ control until such time that either a second interim or a final distribution is declared.

Clients are reminded that:

Clients with Client Assets with a total value of less than £85,000 (as valued at 8 October 2019) are automatically treated by the FSCS as if they have submitted a claim for compensation to the FSCS on account of it exercising its power under COMP 3.2.1A of the FCA Handbook. This decision was made by the FSCS with a view to streamlining the process by which eligible Clients may receive compensation and, where possible, ensuring Client Assets are transferred whole; and
Clients with Client Assets with a total value of equal to or greater than £85,000 (as valued at 8 October 2019) will not be treated as having automatically claimed compensation from the FSCS. Such Clients are asked as part of the online claims process to confirm whether they wish to submit a claim for FSCS compensation or not (if not already done so).

Reyker Securities entered administration in October 2019.

Reyker Securities

Administrators of Reyker Securities confirm first interim distribution to be paid in August

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