Reyker Securities says it has now made the majority of delayed income payments to Merchant Capital clients after it received the income from a number of counterparty banks.
The firm says some clients have yet to be paid where verifications and queries need to be resolved.
Reyker says income paid prior to March 9 and owed to investors is not available to the firm and is being held by Pritchard administrators Mazars LLP.
Merchant Capital structured product plans were originally held by Pritchard Stockbrokers but in February the FSA suspended Pritchard’s permissions due to concerns about the way it handled client assets and monies. As a result, Merchant Capital appointed Reyker Securities on February 17 and transferred assets worth £350m to Reyker.
In March, Reyker Securities angered clients by telling them they need to pay a fee in order to receive their delayed income payments and have it act as custodian.
Reyker says there is one Barclays Capital Asia income plan where the firm have yet to receive all income to date from the bank. This is the income plan FTSE issue 2, yielding 0.53 per cent per month. One income receipt was due on or shortly after April 27, 2012 and there is an end of May income receipt due imminently.
Reyker says Barclays Capital has advised Merchant the funds are in the clearing system and there is no reason to assume there is any issue with the income distributions.
Reyker says: “In future income distributions will be batched by Reyker to be paid to investors on the nearest working day to the middle of each month and the end of each month after the payments have been received from the counterparty banks. In June we expect to make payments on or about the 15th and 29th of the month and investors should allow three working days for funds to reach their accounts. Clearing times, even for Fast Pay transactions, vary depending upon the institution you bank with.”