The Financial Services Compensation Scheme has enabled the majority of the 11,500 former Reyker Securities clients to access their assets.
Joint special administrators at Smith & Williamson have worked with the FSCS to ensure the failed DFM's assets were returned "as quickly as possible" a statement by the FSCS on the matter said today (13 April)..
It added that 90 per cent of transferable assets have now transferred or have been instructed for transfer, representing more than 80 per cent of the total holding of those 11,500 customers.
Jimmy Barber, chief operating officer at FSCS, said: "We want to thank Reyker's customers for their patience as we recognise that it has been an extremely difficult and distressing time for them since Reyker went into special administration.
“The vast majority have now had their assets returned and we are working to ensure that the remaining few with cases that are more complex are transferred to their new broker as soon as possible.
"We also want to thank the team at Smith & Williamson for ensuring the smooth transition of assets."
In October 2019, it was announced that Reyker Securities, the asset manager linked to collapsed structured products provider Merchant Capital was set to enter special administration.
This happened amid "financial difficulties" and it was placed into special administration by the High Court following an application from its directors and following regulatory intervention by the Financial Conduct Authority.
At that time, the FCA confirmed Reyker Securities had stopped conducting any regulated activities and its directors had taken steps to put it into special administration after an attempt to sell the business fell through.
At the end of January 2021, the joint special administrators of Reyker began transferring customers' assets to five new nominated brokers.
At that time, the majority of clients had most, if not all, of their assets returned.
FSCS said today its involvement has allowed most of Reyker's customers to transfer to the new brokers without any deduction from their assets.
Some customers, with assets that require third-party input such as registrars, may have to wait longer for assets to be transferred to their new broker, it added.
According to the FSCS’ statement, transferring paper certificates in particular is more challenging due to restrictions because of the current pandemic.
The special administration costs for most customers have been met by the FSCS with protection available to most small companies and corporate clients holding assets for eligible customers.
Ruth Gillbe is a freelance reporter for FTAdviser
