Reyker Securities, an investment management firm responsible for £1bn of assets, has entered special administration amid “financial difficulties” following a failed attempt to sell the firm.
The company, which has around 15,000 clients, had been pursuing an accelerated sales process, but the Financial Conduct Authority (FCA) confirmed this fell through.
“Due to the firm’s financial difficulties the Directors resolved that it was cash flow insolvent, and in discussion with us, took steps to place the firm into special administration,” the FCA said.
Administrators Smith & Williamson announced today that Mark Ford, Adam Stephens and Henry Shinners had been appointed as joint special administrators for Reykers.
The administrators said Reyker controls client monies worth around £55m and has custody of around £960m of assets, some of which was invested via ISAs and pension products.
The special administration process prevents Reyker from carrying out activities including completing any pending trades, commencing any new trades, and providing clients with any specific advice or guidance.
“The priority for the administrators is to identify, protect and in due course return client money and custody assets to clients in accordance with their interests to the fullest extent possible,” they said in a statement.
Smith & Williamson said it would “look to pursue a transfer to another provider of either some or all of the Reyker business”.
In a statement on its website on 7 October, Reyker said it “has no reason to believe that there is any shortfall in client money or custody assets”.
The FCA said that any costs associated with recovering client monies and custody assets will be deducted from the funds, and signposted clients to its Financial Services Compensation Scheme (FSCS).
Reyker’s administrators will work with FSCS to update clients on their position, the FCA said.
The administrators said they would do everything possible to “minimise the hardship and inconvenience caused to clients as a result of Reyker entering special administration”, and would provide clients with updates in the coming days.