A new ray of hope is visible to the former professional clients of SVS Securities, a sadly failed broker firm. These clients will now be capable of accessing their assets and money by way of ActivTrades plc UK, which is one of the two options they can use to reach their money.
These funds have been trapped in an administrative limbo for over a year, only now really being made available to the investors.
ITI Lagging Behind; ActivTrades Stepping Up
Many delays had started to pop up regarding clients trying to gain access to the funds being held by ITI Capital, even though the nominated broker had acquired the SVS’ client book back in January. As a response, a new avenue is opened, with SVS administrators, Leonard Curtis, as well as British regulators overseeing the entire situation and finalizing the fund distribution.
ITI had claimed that the issue, whatever it was, had already been resolved come August, but even so, some SVS clients still claimed to be locked out of their assets with the new stockbroker. A minimum of 20 clients has already claimed that ITI Capital’s onboarding system was inaccessible to them in September, which is just shy of three months since the 18,000-plus clients were allowed to move over by the FSCS.
Aiming To Keep The New Clients
ActivTrades, seeing the chance, is currently trying to entice these newcomers to stay. The firm highlighted its FX and CFDs trading offerings as part of its wider selection of asset classes, promising to keep the prices competitive to that SVS clients had paid in the past. In the past, ActivTrades had only been allowed to make trades within LSE stocks. Now, however, the broker boasts an even wider array of asset classes to choose from.
Alex Pusco stands as ActivTrades’ CEO, and gave a public statement about the matter. He explained that his firm is eager to welcome all SVS’s former EPC clients that opted to join his firm, promising that the switch will be made as seamless as possible. To hammer his pitch home, he highlighted how these former clients of SVS would have access to a wider range of CFD and FX products to trade in, alongside their old assets from SVS.
Luring In With Incentives
Further incentives were offered, as professional clients making the switch will not have to pay exit fees to ActivTrades, should they wish to withdraw their respective fundings.
Alongside this, the company made it clear that these clients will qualify for insurance covering client funds above the threshold the FSCS had provided. This insurance could be as much as 1,000,000 Pound Sterling, and will further gain benefit through their protected funds being held in segregated accounts.
It’s been more than two years since SVS Securities had been put into special administration, having occurred in August of 2018. This happened after the FCA had concluded that the firm failed to value illiquid assets properly alongside the promotion of high-risk bonds to retail investors, in particular.