Financial Services Compensation Scheme  

FSCS paves way for claims against Reyker

FSCS paves way for claims against Reyker

The Financial Services Compensation Scheme has opened its online claims service for individuals to make claims against Reyker Securities.

According to an update on the lifeboat scheme’s website, Reyker clients who feel the return of assets and money was not enough to address the losses they have suffered are now able to submit a claim.

But the FSCS pointed out it cannot compensate clients whose losses arose from not being able to sell assets or settle transactions during the special administration period or for poor investment performance alone.

Reyker Securities, the asset manager linked to collapsed structured products provider Merchant Capital, entered special administration in 2019.

The firm had suffered "financial difficulties" and was placed into special administration by the High Court following regulatory intervention by the Financial Conduct Authority. 

At the time the FCA confirmed Reyker Securities had stopped conducting regulated activities and an attempt to sell the business had fallen through.  

At the end of January 2021, customers' assets began transferring to five new nominated brokers.

The FSCS said more than 95 per cent of transferable assets held by Reyker clients with a nominated broker have now transferred 

It said work was ongoing to transfer the remaining assets “as quickly as possible” but these involved more complex assets so may take a bit more time.

The FSCS stated: “These can need further one-off arrangements, so progress is unavoidably slow.

"For those still waiting for some of their assets to transfer, we thank you for your patience. Everything possible is being done by the joint special administrators to bring matters to a conclusion as quickly as possible.”

The process of returning assets to clients that did not have a nominated broker or opted out of the proposed transfer to a nominated broker will also start soon.

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