The Joint Special Administrators of Reyker Securities have provided an update to clients of the company.
Despite extensive efforts to trace and notify Clients of the JSAs’ intention to close the Client Money Pool, there are over 800 Clients (previously 900) with Client Money totalling about £1 million yet to submit a claim and new claims continue to be received each week.
On this basis, the JSAs are not yet able to apply to Court to determine a Hard Bar Date (being a date from which the Client Money Pool is closed to claims). This can only be done once the JSAs can demonstrate to the Court that there is no reasonable prospect of any further claims being received in order to protect Clients who would lose their entitlement to Client Money (and rank as a creditor against the Company’s estate).
The JSAs previously confirmed their intentions to pay a second interim distribution of 13.25 pence in the pound to all Clients that have submitted a claim and a valid Client Money Instruction Form (CMIF).
The second interim distribution was due to commence shortly after 12 November 2021 and take several weeks to complete; meaning the majority of participating Clients will have received 98.25% of their Client Money before the end of the calendar year.
The balancing 1.75% will be retained as a provision against new or increased claims until such time that the Client Money Pool is closed and a final distribution of Client Money can be paid.
Despite the second distribution process being delayed due to a number of staff contracting Covid-19, approximately 95% of clients that have submitted a claim and a CMIF will have received their first and second interim distribution before 31 December 2021.
The remaining 5% of Clients that will not have received their first and/or second Client Money distribution include Clients who still need to:
- Provide additional information to verify their bank account details; or
- Take further action to complete the onboarding or transfer process with their new broker; or
- Update their previously submitted ‘hold until the Distribution Plan is approved’ instruction.
Clients who are not FSCS Protected Claimants (or yet to be confirmed as such) will receive 7.25 pence in the pound (taking total Client Money distributed up to 87.25% rather than 98.25%) as a further provision must be made for their share of the costs of the Client Money distribution process.
The JSAs say they will continue to monitor the rate at which new claims are being received and review the appropriate time for a court application with their legal advisors and counsel.