Investment company Reyker’s financial difficulties have reached the point where the Financial Conduct Authority (FCA) has put it into special administration.
The British financial services watchdog has announced that Reyker has been trying to sell the business. However, it stopped trying last week when the sale did not go through.
As a result, the FCA said the directors of Reyker are taking immediate steps to place the company into special administration.
The regulator added that Reyker was still open for potential bids from people and organizations wishing to buy the struggling business.
While Reyker continues to hold and safeguard client money and custody assets, the FCA stated that the company is currently unable to return these to clients. These will be dealt with by the special administrators following their appointment in accordance with the special administration regime.
Having been liaising with the regulator, Reyker has accepted certain restrictions, including ceasing all movement of client money or asset.
The FCA added that apart from in a few specific circumstances – such as receipt of dividend payments – it is not permitted to either receive any new client money or custody assets or to pay away client money or custody assets.
Moreover, Reyker has also decided to not conduct any further business or any other regulated activities including in relation to its role as the delegated Investment Manager of the VT Reyker Real Assets fund.
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