According to the Financial Conduct Authority (FCA), the Reyker Securities is undergoing special administration, starting October 8. Now, the UK Financial Services Compensation Scheme (FSCS) is trying to help some eligible customers of the firm. The customers do not have to make a claim directly with the FSCS.
Special administrators get to work
Special administrators will assess the assets as well as client money held by the firm. For Reyker, this role will be played by Smith & Williamson LLP. Once the status of assets and client monies is assessed, the administrators will try to return as much of the customer money as possible in the shortest time span, and they could. However, in case the firm’s assets are not enough to pay the customers back, the FSCS will jump in. It will fill the gaps in customer payments up to £85,000. However, it will only be available for eligible customers.
Reyker Securities Plc worked as a fund custodian, safety storing the assets and cash of its clients. However, the firm has been going through trouble recently. For some time, its directors were looking for a buyer who could acquire their business. After being unable to find a buyer, they entered Special Administration.
FSCS is keeping its eyes open
However, the FSCS is still accepting compensation claims in a related case. Users who were affected by the fall of Merchant Capital back in 2013. The users can ask for compensation against the fees they paid to Reyker in this case.
The agency has asked users to visit https://www.fscs.org.uk/failed-firms/reyker-securities/ to get updated with the latest news about the case.
Note that the Special Administrators requested the FCA to revoke its regulatory requirement imposed on the firm. The regulator accepted their request so that the administrators can work under the court’s supervision in a more efficient way. Making this will client money gets returned to them easily and more quickly. Reyker has decided not to restart its business after the proceedings are over.