The joint special administrations of the collapsed asset manager Reyker Securities Plc said on Thursday that a vast majority of the company clients have received 98.25 percent of their money.
Additionally, it has transferred 98 percent of the transferable custody assets to the nominated brokers.
The latest update came after the three administrators from Smith & Williamson LLP declared a second interim distribution of 13.25 pence in the pound to all Clients that have submitted a valid claim of their money. Payments of that interim distribution started in November 2021 and were completed by December.
The joint administrators retained a balance of 1.75 percent as a provision against any new or increased claims.
Funds of all customers of any UK-regulated financial services are insured up to £85,000 under the Financial Services Compensation Scheme (FSCS). Moreover, the administrators of Reyker paid 87.25 pence in the pound to all the claimants whose funds were not protected under the government’s compensation scheme.
“Despite extensive efforts to trace and notify Clients of the JSAs’ intention to close the CMP, there remains over 800 Clients with Client Money totaling circa £1 million yet to submit a claim. Despite ceasing direct Client emails and telephone calls, new claims continue to be received each month,” the administrators said.
A Collapsed Company
Reyker entered into special administration in 2019 after it suffered 'financial difficulties' because of its links to collapsed structured products provider Merchant Capital. Also, the owners of the company sought a buyer, but that deal fell through, the Financial Conduct Authority confirmed earlier.
The administrators further warned the claimants against any fraudsters who are seeking money under the disguise of the authorities with false promises of returning their money and assets. Furthermore, they have urged all the remaining claimants to submit their claims to avoid losing entitlement to their funds.
