ITI Capital Limited

Limits on what they may do

• Restriction on regulated activities

  Part 1 of 3 Requirements Cease regulated activities relating to all retail client services 1. ITI Capital Limited must cease to act for any retail clients, whether new, existing or proposed clients, as set out in paragraphs 2-7 below. 2. ITI Capital Limited must not provide services to any new retail client with immediate effect. 3. ITI Capital Limited must appoint an independent third party (the identity of which must be agreed by the FCA prior to such appointment), by 15 June 2022 to oversee by no later than 13 January 2023 (or a date agreed with the independent third party to the satisfaction of the FCA), the orderly closure of ITI Capital Limited’s retail client services and the return (or transfer if appropriate to another provider’s custodian) of all retail client monies and custody assets. 4. From 15 July 2022, ITI Capital Limited must not permit any existing retail clients to open new positions and ITI Capital Limited must not accept any new client money or custody assets from or on the account of existing retail clients. 5. Paragraph 4 does not apply to the acceptance of client money or custody assets from or on the account of existing retail clients as a result of, or in relation to, the following: a) Existing retail clients trading existing client money and/or custody assets; b) Receipt of dividends of coupons; c) Rights issues; d) Corporate actions including maturing bonds; e) Settlement of trades instructed but not yet settled as at the date of the Requirements; and f) Margin calls and movements associated with open trades and positions. 6. By 13 January 2023, ITI Capital Limited must complete all reasonable steps to close all open positions of retail clients held by it, whether on its own account or on account of its clients, and require any monies held by third parties in connection with ITI Capital Limited’s trading activities, to be returned to ITI Capital Limited. 7. ITI Capital Limited must complete the closure of all retail client services by 13 January 2023 (or a date agreed with the independent third party to the satisfaction of the FCA).

• Restriction on regulated activities

  Part 2 of 3 Notification requirements 8. By 30 June 2022, ITI Capital Limited must provide the FCA with draft communications for its approval to retail clients (including those retail clients that have not yet been onboarded by ITI Capital Limited, such as former clients of SVS Securities PLC) and a draft web page update giving notice of the closure of all retail client services, to include key dates by which services will cease to be provided, and where to seek additional information. 9. By 15 July 2022, ITI Capital Limited must notify in writing, in a format to be agreed in advance with the FCA, all its retail clients and third-party vendors that it is closing its retail client services, closing all open positions of retail clients, and not facilitating any new transactions for retail clients. 10. By 15 July 2022, ITI Capital Limited must publish a notice on the front page of its website to confirm that it is closing its retail client services, closing all open positions of retail clients, and not facilitating any new transactions for retail clients. 11. By 4pm on the last working day of each week starting from 22 July 2022, an SMF of ITI Capital Limited must provide the FCA up-to-date client money account statements, a progress update on the return of client money to retail clients, management accounts and written confirmation that ITI Capital Limited is in compliance with these Requirements, for the previous day’s close of business. Asset Restriction 12. ITI will not, without the prior written consent of the Authority, and save as provided for in paragraph 13 below, in any way dispose of, withdraw, transfer, deal with or diminish the value of any of its own assets, and any money and assets it holds for retail clients (whether as client money and custody assets, or otherwise), in the United Kingdom or elsewhere. For the avoidance of doubt, this requirement includes any custodian accounts, client transaction accounts or any other account operated by or held with third parties on ITI's behalf. 13. For the avoidance of doubt, Paragraph 12 does not apply to Paragraph 5, as well as: a) Monetary payments made by ITI of its own monies, in the ordinary course of business, amounting to no more than £25,000 in a calendar month whether as a single transaction or as a combination of related transactions; or b) Payments of reasonable legal cost and expenses; c) Clients withdrawing or transferring out, excluding bulk transfers, on all platforms 14. For the avoidance of doubt paragraphs 12 and 13 above are an assets requirement within the meaning of section 55P(4)(a) of the Act.

• Restriction on regulated activities

  Part 3 of 3 Liquidity requirement 15. ITI Capital Limited must hold a minimum of £4m in cash in an account at an authorised UK credit institution that is held in the firm’s own name and is controlled solely by the firm. 16. The cash referred to in paragraph 15 must not be subject to the rights or interest of any other person (for example any form of security, lien, netting arrangement, right of set-off or preferred creditor arrangement), save where such rights arise due to the terms and conditions routinely applied to such accounts by the relevant credit institution or the security in favour of Euroclear SA/NV dated 11 June 2019 and registered at Companies House on 23 June 2019. 17. The cash referred to in paragraph 15 may be used only: a) To make client redress payments, b) To meet costs associated with any additional remedial actions required by the Authority, c) To ensure that, in the event of firm wind-down, this can be completed in an orderly manner, or d) In any other circumstances, with the express consent of the Authority. Secure records 18. ITI Capital Limited must secure all books and records and preserve information and systems relating to regulated activities carried on by it. These must be retained in a form and at a location, to be notified to the Authority in writing 7 days after the effective date, such that they can be provided to the Authority, or to a person named by the Authority, promptly on request. Effective date 19. These Requirements shall take immediate effect and remain in force unless and until varied or cancelled by the Authority. These Requirements will be published on the Authority’s Register.

• Restriction on regulated activities Part 1 of 2, Effective 05/05/2023

  Requirements Ongoing wind-down actions 1. ITI Capital Limited must complete the full wind down of the retail business by no later than 31 July 2023 with the support of the Skilled Person. This requirement varies and supersedes requirement 2 imposed on 16 February 2023. 2. Following diagnostic, categorisation and tracking work undertaken by ITI Capital Limited on the assets identified and referred to as “illiquid ISINs”, ITI Capital Limited must continue to undertake diagnostic work on the assets identified and referred to as “illiquid ISINs” by the Skilled Person (appointed on 21 September 2022) in its Report of 3 February 2023. ITI Capital Limited must also continue to communicate with impacted clients and SIPP providers. This includes: a) Where ITI Capital Limited considers that any illiquid ISINs should be written off, ITI Capital Limited must first record its rationale for doing so, determine the clients impacted and provide this information to the Authority prior to writing off any illiquid ISINs; b) Producing communications to impacted clients/SIPP providers and providing these to the Authority at least 2 business days’ before doing so. Continue to communicate with impacted SIPP providers in relation to any portfolios that contain the illiquid ISINs; c) Continuing to track the status of all illiquid ISINs, and for residual illiquid ISINs that may trade, ensure the tracking mechanism continues to identify status changes This requirement varies and supersedes requirement 3 imposed on 16 February 2023. 3. ITI Capital Limited must follow the recommendations from the Skilled Person Report of 3 February 2023, and any subsequent recommendations made by the Skilled Person appointed by ITI Capital Limited, in relation to the completion of the wind down of the retail business. ITI Capital Limited will provide a written report to the Authority on the progress of the ongoing retail business wind down on a monthly basis, and by no later than 4pm on the final Friday of each calendar month, commencing from 26 May 2023. Liquidity requirement 4. Pursuant to requirement 5 imposed on 16 February 2023, ITI Capital Limited was required to add sums to ensure it holds £4m in a segregated account with such sums being used for the sole purpose of funding the wind down of the retail business. ITI Capital Limited must continue to hold no less than £4m in this way and for this purpose, unless otherwise expressly agreed by the Authority in writing. Restriction on regulated activities relating to non-retail clients 5. ITI Capital Limited will not accept, without the prior written consent of the Authority, any new monies or custody assets from or on the account of existing non-retail clients. This includes client money or custody assets under the FCA’s CASS Sourcebook, title transfer collateral arrangements, or otherwise. 6. ITI Capital Limited will not onboard, without the prior written consent of the Authority, any new non-retail clients. 7. The requirement in paragraph 5 does not apply to the acceptance of monies or assets from or on the account of existing non-retail clients by ITI Capital Limited as a result of, or in relation to, the following: a) Existing non-retail clients trading existing money and/or custody assets on all platforms as detailed within ITI Capital Limited's VREQ variation request letters dated 13 August 2021, 29 September 2021, 10 January 2022 and 8 February 2023; b) Receipt of dividends of coupons; c) Rights issues; d) Corporate actions including maturing bonds; e) Settlement of trades instructed but not yet settled as at the date of the Requirements; and f) Margin calls and movements associated with open trades and positions. 8. Requirements 5 to 7 above vary and supersede requirements 6 to 8 imposed on 16 February 2023.

• Restriction on regulated activities Part 2 of 2, Effective 05/05/2023

  EFFECTIVE DATE 9. These Requirements shall take immediate effect and remain in force unless and until varied or cancelled by the Authority. The requirements imposed on ITI Capital Limited on 16 February 2023 shall, other than where expressly varied above, continue to apply. ITI Capital Limited also must continue to comply with the terms of all other prior requirements it is currently subject to. PUBLICATION 10. ITI Capital Limited consents to the Requirements being published by the Authority in any manner it sees fit, including in the Authority’s Register.

• Restriction on Regulated Activities effective 10 July 2025

  Restriction on regulated activities 1. ITI Capital Limited must not, without prior written consent of the FCA, carry on any regulated activities in the UK or overseas for which it has Part 4A permission except as set out in paragraphs 2 and 3 below. 2. ITI Capital Limited may continue to hold client money and safeguard and administer custody assets held as at the date of these Requirements, or which ITI Capital Limited has accepted in accordance with paragraph 3. 3. Paragraph 1 does not apply to the acceptance of new client monies or assets from or on the account of existing clients as a result of, or in relation to, the following: a. Receipt of dividends of coupons; b. Rights issues; c. Corporate actions including maturing bonds; d. Settlement of trades instructed but not yet settled as at the date of the Requirements; and e. Margin calls and movements associated with open trades and positions. 4. Save as set out at paragraph 3, ITI Capital Limited must not accept any new client money or custody assets, whether from existing or new clients in any of its business areas. Notification requirements 5. ITI Capital Limited must by 5 working days after the Effective Date notify in writing all customers of the imposition and effect of these Requirements in a form to be agreed in advance with the FCA. 6. By 5 working days after the Effective Date, ITI Capital Limited must publish in a prominent place on its website (iticapital.com) and any other communication channels or contact method used by ITI Capital Limited (e.g. mobile applications, other digital channels, etc) a notice setting out the terms and effects of these Requirements in a form to be agreed in advance with the FCA. 7. ITI Capital Limited must ensure that it has up-to-date contact details (including telephone number and email) published on its website (iticapital.com) and any other communication channels or contact methods used by ITI Capital Limited for its customers. It must also notify the FCA as soon as possible of any changes to its contact details.

• Firm must provide prior written notice of its intention to move Firm cash/assets and client money/assets to any other Firm account, custodian or third party. Also, the Firm will provide copies of consumer communications in relation to the retail wind down

  Unless agreed otherwise with the Authority in writing, ITI Capital Limited: 1. Must provide the Authority with at least 5 business days' prior written notice of any intention to move ITI Capital Limited’s cash and other assets to any other account of ITI Capital Limited or any third party. 2. Must provide the Authority with at least 5 business days' prior written notice of any intention to move client money and assets from a custody provider to any other provider or third party. This excludes transfers where client consent has been obtained to proceed with a transfer. 3. Must provide the Authority with copies of all consumer communications in relation to the retail wind down at least 2 business days’ prior to their issuance. ITI Capital Limited recognises that the Authority does not approve communications to consumers, and it remains responsible for ensuring they are appropriately clear, fair and not misleading.

• The Firm must not close, encash, liquidate, or transfer any client positions without specific client instructions to do so.

  Unless agreed otherwise with the Authority in writing, ITI Capital Limited: 1. Must not close, encash, liquidate, or transfer any client positions without specific client instructions to do so and, as part of this, ensure clients are made aware of relevant risks such as when crystallising a loss or where they are breaking a tax wrapper. Should ITI Capital Limited find itself in the position where it needs to consider such action without client instruction, the Authority must be informed with at least 5 business days’ written notice prior to any action being taken. ITI Capital Limited must inform the Authority: a. what ITI Capital Limited proposes to close, encash or liquidate; b. for which client(s); c. the reasons why ITI Capital Limited has been unable to obtain client consent, why the action is now deemed necessary, and the steps taken to inform this; and d. the steps being taken to consider the potential consumer harm and outcome of this assessment.

• Cease referring former SVS clients to SJS Legal

  1. The Firm is prohibited from referring former clients of SVS Securities PLC (in Special Administration) (“SVS”) who were transferred to the Firm on or around 11 June 2020 as a result of SVS’s Special Administration (the “Relevant Clients”) to SJS Legal Limited (“SJS”).

• No financial benefit to firm from CMC referrals

  2. The Firm is prohibited from financially benefitting, directly or indirectly, from any referrals it has made to SJS before the Effective Date. For the avoidance of doubt, this means that: (a) The Firm must not receive or agree to receive from any Relevant Client any fee for any referrals the Firm made to SJS before the Effective Date.

• Write to all former clients of SVS Securities

  3. The Firm must write to all Relevant Clients who have, before the Effective Date, been referred by the Firm to SJS, in a form to be agreed in advance with the Authority, setting out each Relevant Client’s options for progressing any claim that the Relevant Client may have for redress in relation to investments that the Relevant Client acquired on the advice of, or as a result of arrangements or deals made by, with or through, SVS (the “Redress Claims”). The Firm will do this within 10 business days of agreeing the form of letter with the Authority. The options for progressing Redress Claims will include: (a) For the Relevant Client to elect that SJS should cease handling the Redress Claim on the Relevant Client’s behalf. If the Relevant Client chooses this option, the Firm will use reasonable endeavours to procure that SJS: i. returns to each Relevant Client all data and information relating to that Relevant Client; and/or ii. deletes or destroys all data and information relating to the Relevant Client promptly following return to the Relevant Client of such data and information; and iii. returns to the Relevant Client any fees paid to SJS by the Relevant Client.

• Reasonable endeavours to amend fees with SJS

  4. For the Relevant Client to elect that SJS should continue handling the Redress Claim on the Relevant Client’s behalf. If the Relevant Client chooses this option, the Firm will use reasonable endeavours to procure that SJS amend its charging structure to remove the proportion of the fee that would have been provided to the Firm if any such Redress Claim was successful.

• Clients option to transfer to another CMC

  5. For the Relevant Client to elect that the Firm should transfer, or that it should use reasonable endeavours to procure that SJS transfers, the Redress Claim to a claims management company, as defined in the Glossary of the Authority’s Handbook of Rules and Guidance (a “Claims Management Company”), or a legal practitioner, as defined in Article 89(n)(2) of the FSMA (Regulated Activities) Order 2001, as the Relevant Client may select.

• Firm to publish statement on website

  6. The Firm must, within 10 business days from the Effective Date, publish, in a prominent place on its website homepage and in a form to be agreed in advance with the Authority, a statement about the nature and effect of the Requirements.

• Firm to publish statement on website

  7. The Firm must, within 10 business days from the Effective Date, notify in writing all Relevant Clients of the terms of the Requirements.

• Direct former SVS clients to FSCS

  8. If any Relevant Client contacts the Firm in relation to a potential Redress Claim, the Firm must inform the Relevant Client, clearly, in writing and in a form to be agreed in advance with the Authority, that the Relevant Client can submit Redress Claims directly and free of charge to the Financial Ombudsman Service or the Financial Services Compensation Scheme, i.e., that it is not necessary for the Relevant Client to use the services of a Claims Management Company.