SVS Special Administration: a Scandal in the Making

I have written previously about the collapse of brokerage SVS Securities, here: https://www.sharesoc.org/blog/insolvency-and-administration/an-update-on-svs-securities/ and here: https://www.sharesoc.org/blog/brokers/another-update-on-the-svs-special-administration/

Since my last post on this topic, things have gone from bad to worse. Not only has the transfer of assets from SVS to a new broker taken an inordinate amount of time, but the choice of broker to receive those assets seems questionable, to say the least. This debacle has been covered by press articles, here: https://citywire.co.uk/wealth-manager/news/svs-client-fury-as-new-broker-fails-to-return-278m/a1390644 and here: https://www.ftadviser.com/your-industry/2020/08/14/svs-clients-plagued-by-delays-at-new-broker/

More recently, ShareSoc has been contacted by former SVS clients who have still been unable to access their assets, more than a year since SVS’s collapse.

A firm called ITI Capital is the broker selected by the administrator, Leonard Curtis, to receive the assets of former SVS clients, and approved for that purpose by the FCA. Now, I have never heard of ITI and its principals appear to be Russian. SVS clients report that despite assurances that they would regain access to their assets by 24th July, they have still not been able to do so, nor has ITI responded to their complaints and requests.

SVS clients have written directly to the FCA, complaining about these matters. I have also written to senior FCA managers, on behalf of ShareSoc and its members, expressing concern and demanding prompt action to resolve the problems that SVS clients are still experiencing. We have also seen complaints that the client pages on ITI’s website are insecure, not using SSL encrypted protection.

The FCA is responsible for approving the transfer of assets and I find it incomprehensible that a transfer to an obscure Russian controlled broker, that seems incapable of offering acceptable service levels to SVS’s beleaguered clients, was approved.

We have not so far had a response from the FCA and ShareSoc will seek to escalate this matter through parliamentary channels if a satisfactory resolution doesn’t occur soon.

This chain of events raises further questions about the fitness for purpose of the Special Administration Regime and about intermediation of shareholdings.

Mark Bentley, Director, ShareSoc.

Post Date: September 1, 2020

26 Comments

anon says:

2nd September 2020 at 10:24 am

I am was svs customer, and can confirm that the way this has been handled has been a joke, the administrator should be fined.

Reply
Alan Selwood says:

2nd September 2020 at 11:46 am

Leonard Curtis should have the book thrown at them, or preferably sacked and fined, and prevented from being an administrator altogether.
Then the FCA should override their decision and force all remaining transfers to be split between 4 willing major UK platforms at random, with those transferred having a free option to transfer on to any other UK-based broker of their choosing.
Those already transferred should have their transfer rescinded and allocated as above.
Given the inadequate state of the Russian-owned broker, this should have its licence to trade revoked forthwith.

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David Stredder says:

2nd September 2020 at 1:45 pm

This sounds a shocking state of affairs and it would be good to know if other brokers applied to take on the business and why exactly ITI Capital were considered fit to undertake this work if all investors have never heard of them and deadlines have clearly been broken. The FCA should be compelled to respond and all those affected need to contact their MPs to progress this matter. ShareSoc will hopefully be able to assist with a campaign.

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- Mark Bentley says:
  
  2nd September 2020 at 2:40 pm
  
  David – apparently there were 100 potential brokers in the frame. I can’t understand why ITI were chosen – unless they offered the best price for acquiring the client accounts to Leonard Curtis. I will be following up with the FCA if they don’t respond to my letter.
  
  Reply
MR A I MOHAMMED says:

2nd September 2020 at 2:46 pm

I am a sharesoc / signet member and have experienced all the issues with ITI mentioned.I have failed to get any acknowledgement or reply to my emails to them and also a rerecorded delivery I sent to their compliance team( if they have one).How did they get FCA approval? Is it a EU passport job? They have ignored clients and other brokers` requests,what happens if they now go insolvent due to the money they surely now wasted on acquiring ex-SVS clients as I now doubt they will be able to retain a single one. Can sharesoc also involve the Financial Ombudsman Service as it seems it the appropriate authority to handle this issue.

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- Mark Bentley says:
  
  2nd September 2020 at 2:54 pm
  
  Hi, The FOS is the appropriate body to resolve disputes between clients and financial services firms. In this case, I believe the problem is more fundamental and the FCA is responsible both for the authorisation of ITI and approval of the SVS Special Administration process (under supervision of the high court). Hence we are focusing our efforts with the FCA (which, in turn, is responsible to H.M Treasury) and will use parliamentary channels to increase the pressure, if necessary.
  
  Reply
M Smith says:

3rd September 2020 at 5:42 pm

6 comments but not visible in Windows Edge.

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- Mark Bentley says:
  
  3rd September 2020 at 9:07 pm
  
  Sorry about that – due to a technical problem. Looks like it’s resolved now. You should be able to see all comments now.
  
  Reply
MR A I MOHAMMED says:

3rd September 2020 at 7:28 pm

Thanks for the reply to my comment and clarifying the function of the FOS. Unlike others, I have actually onboarded onto ITI and now asked Iweb to transfer to them and informing ITI but I don`t know what progress has been made on that front in light of what others have gone through, I doubt we will know in the immediate future.Keep up the good work.

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tahir shah says:

6th September 2020 at 12:33 pm

Yes agree with everyone. Take LC and FCA on the pannel to answer soem serious questiosn and get compensation for all this havoc.

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Mark Bentley says:

7th September 2020 at 5:27 pm

I have created a new forum to discuss matters concerning the SVS insolvency here: https://www.sharesoc.org/forums/forum/svs-client-action-group/ I will post any new developments in that forum. The forum is open to all members of ShareSoc and SIGnet, who can comment on existing topics, but only full members can create new discussion topics within the forum. If you are not yet a member of ShareSoc you can join here: https://www.sharesoc.org/membership/ . Joining as a full member helps to support our costs through the modest annual membership fee of £45. Associate membership is free.

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Mark Bentley says:

9th September 2020 at 9:00 pm

We have had a response to my letter from the FCA today, which I have posted in the new forum: https://www.sharesoc.org/forums/topic/response-from-the-fca/

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Gareth says:

30th September 2020 at 2:16 pm

Hi, I’ve just logged on to my ITI portfolio to find that the shares that where supposed to be transferred from SVS are no longer there. There is a cash balance that is showing but no shares. Can someone advise me please. Thank you

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- Mark Bentley says:
  
  30th September 2020 at 2:54 pm
  
  Hi Gareth,
  
  You will find further discussion about this in our SVS Client Action Group forum. You need to join ShareSoc to access and post to that forum, which you can do as a free associate member.
  
  Best,
  Mark
  
  Reply
MR A I MOHAMMED says:

30th September 2020 at 3:26 pm

Hi Gareth,
The same happened to when I logged into my account but happily I found that the holdings have actually been transferred my Iweb account and no one neither Iweb nor ITI have informed me, but ITI have not transferred the money to my bank account as I requested so it will now be another battle to get the money.
If you had filled and uploaded their withdrawal forms, check the broker where you asked your holdings to be transferred to. It might have been transferred. Good luck

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Colin says:

30th September 2020 at 5:12 pm

I have been trying to contact ITI Capital by phone on 0207 562 8001(it connects to a South African outsourcer) and was given the number 0207 562 8015 to address my queries, the line rings for ages and then goes dead. Also no responses to emails.

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john b says:

5th October 2020 at 12:39 pm

just tried the 562 8015 number (having been given it by ITI an dit just rings and then goes dead. this on 5 Octover at 11.15 am.

Just like

was given the number 0207 562 8015 to address my queries, the line rings for ages and then goes dead. Also no responses to emails.

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Mark Bentley says:

5th October 2020 at 4:03 pm

Colin, John – I am pleased to advise that I have communicated with ITI today about ShareSoc assisting clients who are having problems with their ITI accounts. Watch this space for further details, which I expect to publish soon.

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- Dave Johnson says:
  
  23rd October 2020 at 1:54 pm
  
  Hi Mark
  
  I am having all these issues also, i can I get some support for this as its driving me crazy now. i have spent hours and hours trying to contact ITI but never get through or just get fobbed off. I logged in today and found that my stocks have all disappeared , I called them and got the usual ‘its a technical issue and someone will call you’
  
  Please help
  
  Reply
  - Mark Bentley says:
    
    23rd October 2020 at 2:14 pm
    
    Hi Dave,
    
    Please join our support group to get our support.
    
    Best,
    Mark
    
    Reply
My2penneth says:

14th October 2020 at 12:58 pm

I’ve made well over 85 attempted phone calls to ITI including several to the completely useless South African call centre who redirect your enquiry back to the UK…who don’t answer the phone.

I’ve contacted the FCA, FOS, my MP …..all useless. I have even raised issues via tge administrator.

I initiated share transfers out of this deadful company at the end of July. Despite numerous emails to S.Khan and R.Agarwal they have still not carried out the transfers as on October 14th.

I have now raised formal FOS complaints as my email to D Moss has not been answered after 8 weeks. There will be a complaint from both myself and my wife.

I have had enough of ITI . The amount of time spent trying to contact them via phone and email is simply unbelievable.

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colin says:

26th October 2020 at 10:09 am

I have the same ongoing issues mentioned above, and most of my investments have disappeared !

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Mark Bentley says:

26th October 2020 at 12:43 pm

This article describes measures we are taking to assist clients: https://www.sharesoc.org/sharesoc-news/progress-for-svs-clients/ See the forum referenced in that article for the very latest news.

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J M Witort says:

14th December 2020 at 7:09 am

I am still waiting for my assets to be transferred to IG from ITI ,which I requested way back in September. There has been no response from ITI. What options are open to me now?

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- Mark Bentley says:
  
  14th December 2020 at 8:50 am
  
  Join our support group: https://www.sharesoc.org/campaigns/svs-client-support-group/ for assistance. Note that, generally, we can only provide individual assistance to full members of ShareSoc.
  
  Reply
  - Mark Bentley says:
    
    14th December 2020 at 8:52 am
    
    I have corrected the link that was in my original reply to https://www.sharesoc.org/campaigns/svs-client-support-group/
    
    Reply

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SVS Special Administration: a Scandal in the Making

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