The Financial Services Compensation Scheme (FSCS) is drawing up plans to help eligible customers of Reyker Securities, which went into special administration on Tuesday.

Mark Ford, Adam Stephens and Henry Shinners, all of Smith & Williamson, have been appointed as Joint Special Administrators of Reyker.

They will carry out an assessment of the client money and assets held by the Moorgate-based firm.

After this the Special Administrators will work to return as much client money and assets to customers as possible, as quickly as possible.

If they find that the firm does not hold enough client money or assets, FSCS says it will cover asset and client money shortfalls for eligible customers.

This will include any distribution costs back to clients, up to the compensation limit of £85,000.

At this stage there is no need for customers to make a claim with FSCS, the body has said.

Reyker Securities is a fund custodian that holds and safeguards cash and assets on behalf of its clients.

The firm offered DFM and structured investment services and has around 15,000 clients controlling client monies of around £55m and custody assets of approximately £960m for them, some of which was invested via ISAs and pension products.

Until recently Reyker was attempting to find a buyer for its business but it has not been possible to achieve a sale.

Consequently, the directors of Reyker decided to place the firm in Special Administration.

Although Reyker is in Special Administration, FSCS continues to accept claims for compensation against Merchant Capital Limited in relation to fees charged by Reyker, following the failure of Merchant Capital in 2013.

Throughout this process FSCS says it will be working closely with the Special Administrators and “will provide updates at regular intervals”.

Customers should subscribe at https://www.fscs.org.uk/failed-firms/reyker-securities/ to receive the latest updates.