SSL to liquidate and transfer securities held overseas by customers

The entity overseeing the affairs of troubled investment firm Stocks and Securities Limited (SSL) is moving to liquidate securities held overseas by customers and have the funds transferred to them.

It's not clear if customers will be paid in local or overseas currencies.

Further, no timeline has been indicated.

In a public notice to customers, SSL temporary manager, Business Recovery Service Limited (BRSL), stated that the move is the next phase in the effort to remit holdings to account holders at the investment firm. 

“After exploring all possible solutions, and considering the cross border nature of these assets, the decision has been made to liquidate the international portfolio and remit funds directly to clients as soon as the reconciliation process is complete,” said BRSL.

On the local front, the company is reporting an increase in the number of SSL customers who hold local securities to whom transfers have been made.

There is a similar increase in cash transfers.

BRSL indicated that as of February 16, over 1,000 client accounts totalling approximately $14.5 billion of local securities were transferred to facilitate access by SSL clients through brokers and institutions selected by them. 

In January, 765 client accounts totalling $10.5 billion in local financial securities were transferred to other entities, with an additional transfer of $564 million in cash related to 165 clients.   

As at February 16, cash totalling approximately $626 million for over 200 clients has been paid to them. 

The temporary manager said SSL will continue to process cash transfer requests. 

However, the clock is rounding out on the transfer of local securities.

BRSL stated that SSL will cease the processing of local securities come February 29.

Instructions will follow for clients who have not yet submitted a request, it noted.

“SSL clients are encouraged to update their Know Your Customer (KYC) information by contacting the SSL client service team at sslserviceteam@sslinvest.com or by phone at 876-929-3400 or 876-618-2979, as soon as possible. Concerns or queries may also be directed to the SSL client service team at the contact information mentioned above.”

Last January, the Financial Services Commission (FSC) was alerted to discrepancies in the client accounts at SSL.

Subsequently, the FSC engaged law enforcement and took over the institution, assigning BRSL as the interim manager for SSL on January 17, 2023. 

Following the appointment, the interim manager has, in coordination with the FSC, taken an active role in administering SSL.

The remit includes protecting current accounts, aiding investigations, securing SSL's assets, and initiating a step-by-step process for transferring client assets to chosen brokers and financial entities.

Meanwhile, BRSL is advising that effective February 26, the offices of SSL will be relocated to 11 Connolley Avenue, Kingston 4. 

The company said another public update will be issued in March.

"The final phase in the process of transferring client assets will see action being taken in relation to the asset category (iv), Promissory Notes. In this regard, action regarding the related party promissory notes will be subject to the financial condition of the SSL Group."

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