IMPORTANT NOTICE REGARDING REYKER SECURITIES PLC
Update: 9 October 2019
On Tuesday 8 October 2019, the Court appointed Mark Ford, Adam Stephens and Henry Shinners, all of Smith & Williamson LLP, as Joint Special Administrators of Reyker Securities Plc, following an application by the Directors.
Original notification: 7 October 2019
Important notice for all clients and creditors from Reyker Securities plc group (“Reyker”) at 2pm on the 7th October 2019:
“Following an application by Reyker because of financial difficulties, the Financial Conduct Authority has imposed regulatory requirements meaning that: Reyker has ceased to conduct regulated activities except for holding and safeguarding client money and investment assets.
So that no client is disadvantaged compared to another, no withdrawals or transfers of client money or assets are being processed for the time being.
Importantly, Reyker has no reason to believe that there is any shortfall in client money or assets as at 7 October 2019. The directors are taking steps to put the firm into special administration.
Please view reyker.com/important-information/ for more information.”
Reyker Securities plc is the Custodian service provider for Deepbridge products and its investing and invested clients.
Deepbridge is currently liaising with Reyker and the Financial Conduct Authority, and we will provide an update and further guidance at the earliest opportunity.
The FCA has confirmed the circumstances behind this situation as:
“Reyker had until last week been undertaking an accelerated sales process, but it has not proved possible to conclude that sale. Although it remains open to potential acquirers of the business, in light of its financial circumstances, the directors of Reyker are taking immediate steps to place the company into special administration under the Investment Bank Special Administration Regulations 2011.”
What does this mean for Deepbridge investors?
We are reassured that Reyker, with the approval of the FCA, has stated that there is no reason to believe that there is any shortfall in client money of assets as at 7 October 2019. We would also highlight that the custodian is not in default at the current time, and that client assets are held in trust by the custodian.
Reyker, under the supervision of the FCA, continues to hold and safeguard client money and custody assets. Client funds processed by Reyker are held at NatWest bank in a segregated client trust account.
We are currently liaising with the Special Administrator to confirm processes and timescales.
What about new investments?
It is business as usual and Deepbridge products remain open. Deepbridge is currently enacting contingency plans and liaising with a number of prospective custodians. We expect to be able to process new applications imminently. Please send application forms to Deepbridge as usual but please DO NOT send bank transfers to Reyker Securities. We shall confirm revised bank transfer details at the earliest opportunity.
You do not need to do anything at the point. As soon as Deepbridge has further information from the FCA and Administrators, we will provide further guidance.
What if I am looking to withdraw cash, following the exit of my holding in iPipeline?
As soon as we have further information, we will provide you with an update. We are reassured that Reyker, with the approval of the FCA, has stated that here is no reason to believe that there is any shortfall in client money of assets as at 7 October 2019.
Financial Services Compensation Scheme
Whilst the company is not in default at the present time, we report that Reyker Securities plc participates in the Financial Services Compensation Scheme.
Further details can be found at https://www.reyker.com/wp-content/uploads/2019/01/FINANCIAL-SERVICES-COMPENSATION-SCHEME-VM-02.01.19.pdf