In the Matter of SVS Securities PLC (in Special Administration)

In a special administration, the court may grant final exit relief, including termination of the administrators’ appointment, transfer to dissolution, discharge of the administration order and discharge of the administrators from liability, where the statutory and court-approved distribution process is complete and no further property or claims remain requiring administration.

The court may make a discharge order on standard terms, including a deferred effective date, where that reflects current practice and is appropriate to secure finality.

The joint special administrators of SVS Securities Plc applied under rule 240 of the Investment Bank Special Administration (England and Wales) Rules 2011 for final exit relief. The application followed a court-approved distribution plan involving the transfer of client assets and client money to a new broker.

The administrators sought termination of their appointments, permission to move the company from special administration to dissolution, discharge of the special administration order and discharge from liability. They certified that SVS had no further property which might permit a distribution. No objections or further claims were made.

The central issue was whether the distribution process was sufficiently complete to justify all four heads of relief.

1. Application granted. All four heads of final exit relief were granted, with the application’s costs paid as an expense of the special administration.
2. The court was satisfied that the administrators had complied with the court-approved distribution regime and had acted conscientiously and rigorously in the interests of fairness and finality.
3. Client assets and client money belonging to 18,353 clients, representing over 99% of the clients and having an aggregate value of approximately £205 million, had been returned through the sanctioned block transfer to a new broker.
4. The administrators’ statement under rule 221(1)(b) confirmed that SVS had no further property which might permit a distribution. No misfeasance claims had been notified or identified.
5. The completeness of distribution justified termination and discharge, dissolution and discharge from liability. A discharge order taking effect 28 days after the order was appropriate, reflecting current practice noted in Re Beaufort Asset Clearing Services Ltd and referred to in Re Lehman Brothers Europe Ltd.

First-instance application. No appellate history was stated in the judgment.