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SVS Securities bites the dust

Discuss Brokers, trading, fees, experiences
monabri
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SVS Securities bites the dust

#241348

Postby monabri » August 2nd, 2019, 5:58 pm


mc2fool
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Re: SVS Securities bites the dust

#241385

Postby mc2fool » August 2nd, 2019, 10:13 pm

Uh oh! I see their trading site and the SVS XO site are down. It's one of your brokers, IIRC, yes? What's your exposure?

monabri
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Re: SVS Securities bites the dust

#241387

Postby monabri » August 2nd, 2019, 10:32 pm

mc2fool wrote:Uh oh! I see their trading site and the SVS XO site are down. It's one of your brokers, IIRC, yes? What's your exposure?


More than £85k in my execution only account.

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Re: SVS Securities bites the dust

#241396

Postby mc2fool » August 2nd, 2019, 11:24 pm

monabri wrote:
mc2fool wrote:Uh oh! I see their trading site and the SVS XO site are down. It's one of your brokers, IIRC, yes? What's your exposure?

More than £85k in my execution only account.

Fingers crossed for you! :(

monabri
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Re: SVS Securities bites the dust

#241399

Postby monabri » August 2nd, 2019, 11:53 pm

I wonder if it's something to do with this ( carbon credit trading).

https://www.thebureauinvestigates.com/s ... blic-money

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Re: SVS Securities bites the dust

#241444

Postby jwillis3 » August 3rd, 2019, 10:20 am

Also in for over 85k - trying not to panic! Though it sounds like when Beaufort went into administration client funds were transferred to Share Centre and that if this is the same scenario the same will happen. Is that your take on this too?

monabri
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Re: SVS Securities bites the dust

#241465

Postby monabri » August 3rd, 2019, 12:31 pm

jwillis3 wrote:Also in for over 85k - trying not to panic! Though it sounds like when Beaufort went into administration client funds were transferred to Share Centre and that if this is the same scenario the same will happen. Is that your take on this too?


I would hope that the same thing happens with SVS Securities if indeed they do actually go into admin. The questions are - who will fund the administrator and how much will it cost and what are the timescales?

The pooled assets in the so-called (by name only) "ring-fenced" accounts might be raided by the administrator to fund their costs (when Beaufort collapsed, they found that the administrator was legally allowed to raid accounts to fund their work - PWc wanted a stupid sum of money for a few months work - this was challenged - see link below. In the end, this raid of "our" funds * didn't happen).

However, if this raid were to happen, one would then need to make a claim on the FSCS to recover losses to a max of £85k per individual (£85k being the new limit as of April 2019, increased from £50K).

As SVS Securities was FCA regulated, the shares are held, pooled, in a separate account. I'm not too concerned that they are actually there (fingers & toes crossed).

Until the transfer, the funds are in limbo and might be an issue if one was relying on dividend payments to live (fortunately not the case, here) or wanted to sell shares.

(Q: What happens to the dividends - do they build up in the accounts and do they also get transferred over assuming a Share Centre transfer? After all, the dividend entitlement belongs to the shares held in the pool for which one would receive a percentage dependent on your individual holding).



https://www.thisismoney.co.uk/money/diy ... -safe.html


* our funds - assumes you are a private (retail) investor.

nikbahl123
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Re: SVS Securities bites the dust

#241628

Postby nikbahl123 » August 4th, 2019, 2:39 pm

Hi Thanks for sharing the info below.
I am a small player in the stock market and use SVS Securities for trading. I have around of sum of all together £8k invested via the ISA account on their trading platform out of which £2K is kept in ISA and the remaining I hold stocks of different companies.

If the rumours are true about SVS shutting down then what will happen to the funds kept in ISA and stocks invested in via ISA.

Thanks for helping
Just a nervous investor
Nik

monabri
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Re: SVS Securities bites the dust

#241634

Postby monabri » August 4th, 2019, 3:06 pm

nikbahl123 wrote:Hi Thanks for sharing the info below.
I am a small player in the stock market and use SVS Securities for trading. I have around of sum of all together £8k invested via the ISA account on their trading platform out of which £2K is kept in ISA and the remaining I hold stocks of different companies.

If the rumours are true about SVS shutting down then what will happen to the funds kept in ISA and stocks invested in via ISA.

Thanks for helping
Just a nervous investor
Nik


The funds will be tied up for a while (months probably) but you will be compensated in FULL as SVS Securities are FCA regulated and are backed by the FSCS to the tune of £85K per investor. I think you can be very relaxed on getting the full £10k back -more likely - your account will be transferred to something like the Share Centre 100%).

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Re: SVS Securities bites the dust

#241636

Postby nikbahl123 » August 4th, 2019, 3:15 pm

Thanks very much, appreciate your help

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Re: SVS Securities bites the dust

#241647

Postby jwillis3 » August 4th, 2019, 4:32 pm

Thanks for your reply and the link to the article. I guess we will learn more tomorrow hopefully. I was waiting for the completion of a takeover bid which took me over the £85k limit. Hoping those funds will still be there when we are able to access accounts finally, though expect it will be after Christmas if Beaufort is anything to go by. This is my life savings and though will not affect me now will certainly affect my retirement plans! Keeping everything crossed for now!

Best of luck to everyone concerned

Willis

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Re: SVS Securities bites the dust

#241651

Postby Dod101 » August 4th, 2019, 4:40 pm

This once again illustrates the caution needed when using any platform. I would hope that ISA and SIPP accounts get a higher priority than trading accounts because with SIPPs and ISAs we have no option but to use a manager and its platform. With trading accounts (however much I sympathise with those holding funds in them with SVS), these are voluntary and no one requires the investor to use a trading account, however convenient they may be.

Is there are a common thread with Beaufort? I do not know, cheaper to use? More convenient? or what?

Dod

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Re: SVS Securities bites the dust

#241656

Postby PinkDalek » August 4th, 2019, 4:55 pm

Dod101 wrote:This once again illustrates the caution needed when using any platform. ...

I spotted another thread yesterday, where you had commented similarly:

Dod101 wrote:But who are SVS Securities. No matter what the transfer in cost may or may not be nor the buying/selling fees nor the custody charges, who are the? Who is backing them, what record have they etc?

viewtopic.php?p=143367#p143367

SVS Securities (fka Hoodless Brennan) has an interesting history. I’ll say no more at this stage.

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Re: SVS Securities bites the dust

#241659

Postby Dod101 » August 4th, 2019, 5:12 pm

Thanks PD. I am relieved to see that my posts were in June 2018. I can probably be excused for not remembering them.

I thought mine of 7 June 2018 has a suitable note of caution about it.

The thing is that the security of the platform is the over riding issue. It is more important than costs or anything else, at least in my book. That is why I have opened a new account with HSBC although the website is not very good. Currently I have mot of my assets held between Interactive Investor and ATS (now of course owned by II) I think I will do a three way split so will be looking for another provider, maybe iWeb?

Dod

monabri
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Re: SVS Securities bites the dust

#241660

Postby monabri » August 4th, 2019, 5:12 pm

PinkDalek wrote:SVS Securities (fka Hoodless Brennan) has an interesting history. I’ll say no more at this stage.


I'm not sure that SVS has any link to Hoodless Brennan.

Beaufort Securities does appear to be linked

https://hallbrook.claims/broker/beaufort-securities

"Beaufort Securities Ltd formerly HB Markets Ltd, formerly Hoodless Brennan PLC was officially declared in administration as of the 1st March 2018. "

I think the issue withvSVS might be related to their involvement in "carbon trading".

monabri
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Re: SVS Securities bites the dust

#241662

Postby monabri » August 4th, 2019, 5:19 pm

SVS is regulated by the FCA and has the £85k FSCS per investor. Hopefully the assets are indeed ring fenced (I use these words but recognise the limitation and they are not truly ring fenced...see Beaufort ).

Originally I posted on the HYP Practical board but the post was moved. The seriousness of having all ones eggs in one nominee account basket for someone relying on dividends to pay bills should be highlighted there IMHO.

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Re: SVS Securities bites the dust

#241663

Postby jackdaww » August 4th, 2019, 5:35 pm

DAK what exactly is at risk here ?

the shares , the cash in the account or both ?

and which does the 85k cover ?

:?

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Re: SVS Securities bites the dust

#241669

Postby Dod101 » August 4th, 2019, 5:49 pm

monabri wrote: Originally I posted on the HYP Practical board but the post was moved. The seriousness of having all ones eggs in one nominee account basket for someone relying on dividends to pay bills should be highlighted there IMHO.


For anyone who cares about their investments, it is folly to have all one's eggs in one basket irrespective of whether or not you rely on dividends for living, but I accept all the more so for someone like me who does. I in effect have three brokers, II/ATS, HSBC and certificated shares (which I think are probably the most secure) The trouble is the pesky dividend tax because I am well over the measly £2000 tax free allowance.

Dod

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Re: SVS Securities bites the dust

#241670

Postby Lootman » August 4th, 2019, 5:50 pm

Dod101 wrote:Thanks PD. I am relieved to see that my posts were in June 2018. I can probably be excused for not remembering them.

I thought mine of 7 June 2018 has a suitable note of caution about it.

Indeed, your last comment on that topic was prescient.

Dod101 wrote:The thing is that the security of the platform is the over riding issue. It is more important than costs or anything else, at least in my book. That is why I have opened a new account with HSBC although the website is not very good. Currently I have mot of my assets held between Interactive Investor and ATS (now of course owned by II) I think I will do a three way split so will be looking for another provider, maybe iWeb?

I agree, but the problem is that the more accounts you have, the more time and effort it takes to manage things, particularly if some of the accounts are taxable.

For instance, in theory you could keep less than £85K in each account and stay within the £85K FSCS cover. However, for someone with, say, a £1 million portfolio (surely not that unusual here) that implies having accounts with a dozen brokers. And with that many, you run the risk of being with some more marginal names like SVS or Beaufort.

The sad reality is that there may be only a handful of UK brokers that are either very solid and secure, or are backed by institutions that are. And after the 2008 implosion of many banks, I'm not even sure any institution is impregnable.

The US version of FSCS is SIPC, and that insures each account up to $500,000 in securities and $250,000 in cash. If such cover were available in the UK then I'd be much more comfortable. I really do not want to proliferate accounts and risk having assets with some dodgy tiddlers or opaque entities.

Private investors should not have to guess which brokers won't fail. That said, there are perhaps opportunities here for the very few banks on the planet that are rock solid, such that if they fail we are all in trouble and your shares are probably worthless anyway.

monabri
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Re: SVS Securities bites the dust

#241671

Postby monabri » August 4th, 2019, 5:52 pm

jackdaww wrote:DAK what exactly is at risk here ?

the shares , the cash in the account or both ?

and which does the 85k cover ?

:?


As far as I understand it...

The individual investor is covered for losses up to 85k. This loss could be in the form of cash and /or missing shares ( ie fraud) from the ring fenced accounts. So if 40k cash and 45k shares were missing one would be covered. The compo limit for shares was increased in April 19 from 50k to 85k. The cash compo was already 85k. You don't get compo for losses of 85k in cash AND 85k in shares...its to a total of 85k.

Note, I use the word "losses". It might be that an investor has more than 85k invested (170k joint accounts) and still comes out reasonably "unharmed". If the assets (shares) are properly ring fenced ( and you'd like to think a company regulated by the FCA would hold the shares in a pooled account with proper records of beneficial ownership....but you never know.....fraud, negligence?).

I'm not sure what happens to dividends during the time the accounts are being


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