WIREDGOV

Around 11,500 former clients of wealth management firm Reyker Securities have taken a major step forward toward being able to access their 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.  

The Financial Services Compensation Scheme (FSCS) has been working closely with the Joint Special Administrators (JSAs) and their team at Smith & Williamson to ensure that Reyker clients’ assets are returned as quickly as possible. The JSAs will first be confirming the identity of the five nominated brokers. This will be followed by a Client Asset Return Statement to customers, which will detail all the assets to be returned to them by a series of transfers to new brokers.  

A Distribution Plan setting out the basis for these transfers was approved by the High Court on 16 October 2020. The JSAs will now continue their work to effect the transfers approved under that plan. 

Jimmy Barber, Chief Operating Officer at FSCS, recently said:

“We want to thank Reyker clients for their patience. We hope it will be possible for the JSAs to set out more detailed timescales for the transfer of assets in the coming weeks. 

“There have been several instances of third parties issuing fraudulent communications targeting Reyker’s clients affected by the Special Administration. We would ask Reyker clients to remain vigilant and exercise caution when dealing with correspondence regarding the Special Administration.” 

FSCS will meet the costs of the Special Administration on behalf of all individual customers of up to £85,000 per customer. FSCS protection is also available to most small companies. 

FSCS’s involvement will allow the vast majority of customers to transfer to the new brokers without any deduction from their assets. 

Media enquiries 

James Tweed T: 020 7375 8646 

Anthony Ozimic T: 020 7375 8638 

E: publicrelations@fscs.org.uk 

Notes for Editors 

About FSCS 

FSCS is the UK's statutory compensation scheme that protects customers of authorised financial services firms that carry out certain regulated activities. FSCS protects deposits, investment business, home finance (mortgage) advice, general insurance, insurance broking and debt management. FSCS can pay compensation if an authorised firm is unable to pay back money it owes its customers in connection with a regulated activity. The Scheme was set up by Parliament in 2001 and is funded by the financial services industry.    

Declaring a firm in default 

Before FSCS can pay compensation, it must be satisfied that a firm does not have sufficient assets to meet claims. It describes this as being ‘in default’. 

The Scheme will declare a firm in default if: 

• it has received at least one claim; and 
• it is satisfied that the financial services firm which has failed is unable to return money to eligible claimants itself. 

FSCS is required to do this before it can pay compensation to eligible claimants. 

Declaring a firm in default allows private individuals who have suffered actual financial loss as a result of their dealings with that firm to apply to the Scheme. Some businesses and charities may also be eligible, depending on the type of claim. 

Authorised firms 

Dealing with a Financial Conduct Authority (FCA) or Prudential Regulation Authority (PRA) authorised firm that is carrying out certain authorised activities gives consumers access to the Financial Ombudsman Service and FSCS. Consumers can check that the firm they are dealing with is authorised by using the FCA’s Financial Services Register.