Mark Ford, Adam Stephens and Henry Shinners of Smith & Williamson were appointed as joint special administrators of Reyker yesterday.
Reyker provided custody and dealing services to institutional and retail clients.
It continues to employ around 20 staff, who are based at its offices in Moorgate, in the City of London.
Reyker has around 15,000 clients controlling client monies of caround £55m and custody assets of approximately £960m for them, some of which was invested via ISAs and pension products.
A statement from Smith & Williamson read: “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.
“This process will commence with the administrators seeking to determine the completeness of the client monies and custody assets controlled by Reyker as compared to clients’ verified entitlements.
“As highlighted on the company’s website, Reyker has no reason to believe that there is any shortfall in client money or custody assets as at 7 October 2019.
“The administrators will be doing everything possible to expedite this process and minimise the hardship and inconvenience caused to clients as a result of Reyker entering special administration.”
The administrator says that following the commencement of special administration the firm is not able to:
· Complete any pending trade;
· Commence any new trade;
· Act on any corporate action;
· Act on any instruction to move client money or custody assets to alternative businesses; or
· Provide any specific guidance or advice to clients.
The administrators say they expect to “provide regular updates in the coming days on progress made”.
The statement added: “Please bear with us and Reyker staff, as we expect that phone lines will be busy.
“Staff will be very limited in what they can say at this early juncture.
“In the coming weeks the administrators will look to pursue a transfer to another provider of either some or all of the Reyker business.
“They will also develop and publish their proposals setting out how they will commence the return of client money and client custody assets.”
The administrators will also be “taking steps” to realise Reyker's own assets and assess its liabilities.
An FCA statement read: “Reyker’s Directors had been pursuing a sale of the business, however they were unable to complete this sale.
“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.”