Welcome to Hume Capital Securities plc
Hume Capital Securities plc Investor Information
Hume Capital Markets division
See humefunds.com for Hume Capital Management - Asset
Management arm of the business
appointed to Hume Capital Securities plc
Upon the application of the
directors, the High Court appointed Julien Irving, Mark Colman and
Andrew Duncan each of Leonard Curtis Recovery Limited as joint
special administrators of Hume Capital Securities plc a UK based
investment business with effect from 10.47 am today (16 March 2015)
("Joint Special Administrators").
For the avoidance of doubt, the
subsidiaries of Hume Capital Securities PLC; Hume Capital
(Guernsey) Limited, Hume Capital Investments Limited, Hume
Capital Management Limited, XCAP Nominees Limited and XCAP
Securities (Middle East and India) Limited have not been placed
into any process.
The Joint Special Administrators
have objectives of the Administration are:
- To ensure the return of client assets as soon as is
- To ensure the timely engagement with market infrastructure
bodies and the Authorities pursuant to regulation 13 of the
Investment Bank Special Administration Regulations 2011: and
- To either rescue the Investment Bank as a going concern or wind
it up in the best interests of creditors.
As a result, the Joint Special
Administrators are currently considering the options for the
business going forward, including a sales process of the whole or
part of the business. They are speaking with interested parties in
A number of staff will be retained
by the Joint Special Administrators to support a sale or
alternatively, an orderly wind down of the business, but some
redundancies are likely in the short term. The Joint Special
Administrators will provide updates as soon as possible.
Notes to Editors:
The joint special administrators
have appointed DWF LLP, London as their legal advisors.
For client and all non-press
enquiries, please e mail your details to:
The Administrators will respond to
your queries as soon as possible
Press requiring further
information please contact:
*ATTENTION* CLIENT COMMUNICATION:
12 March 2015
Hume Capital Securities plc ("Hume" or the
Statement Re: Financial Position and Client
Financial Position of the Company
The Board of Hume Capital Securities plc ("Hume" or the
"Company") requested suspension of trading in its shares at 7.30
a.m. on 11 March 2015 pending clarification of its financial
position. With effect from 8.00 a.m. on 12 March 2015 Hume's
membership of the London Stock Exchange was suspended.
In the last annual accounts it was stated that a further
significant equity capital injection into the Company would be
required in 2015. Substantial cost savings have been made in the
business since last June, when the planning for the refinancing
began. It has, however, become apparent that the legacy losses and
costs of the business are too high and the current revenue
generation of the business too low to resolve the capital shortfall
to the satisfaction of our regulators without a capital injection
at a level which is a significant multiple of that which was
envisaged last June.
Whilst the pipeline of potential new business across all
divisions is now looking stronger than it has for some time, the
timing of potential revenue receipts is nevertheless too far out or
too uncertain to tide the business over in the short term. The
Board has therefore reluctantly concluded, after consulting with
the cornerstone investors and debt providers who have supported the
business to date, that an underwritten fundraising at a level
likely to provide the requisite capital and satisfy the Company's
primary regulator for its authorised business is not commercially
The Board appointed insolvency practitioners Leonard Curtis and
legal advisors DWF LLP to explore options for the continuation of
the business but has reluctantly had to conclude that the only
option open to the Company is to appoint administrators.
As the Company falls within the ambit of The Investment Bank
Special Administration Regulations 2011 ("SAR"), we intend to apply
to the court for the appointment of administrators under the SAR
regime, which is expected to take place within the next few days. A
further announcement will be made following any appointment of a
The SAR regime has as its objectives, inter alia, the return of
client assets as soon as is reasonably practicable and to rescue
the Company as a going concern or to wind it up in the best
interests of the creditors.
The SAR dictates the timing and manner in which client assets
will be dealt with - which is a matter beyond the control of Hume
or its Board.
As a consequence, of the above and after discussions with the
regulator, Hume has applied for a requirement ("Requirement") which
the FCA has imposed on it under section 55L(5) of the Financial
Services and Markets Act 2000.
Without the FCA's express prior written consent, Hume must
carry on business that involves the carrying on of a regulated
activity, except where necessary to settle any existing contracts
to which it is a party;
initiate any further business, including accepting a new
client or a new order for an existing client;
In addition, the Hume must not deal with or release client money
unless it is:
receiving client money into its client bank accounts in
compliance with the Client Assets Sourcebook in the FCA Handbook
otherwise dealing with or releasing client money with the
FCA's express prior written consent.
Hume must not in any way dispose of or deal with any of its
assets without the FCA's prior written consent.
The Board of Hume continues to oversee the custody of client
assets in accordance with the CASS requirements of the FCA
Handbook. Hume will act in accordance with the FCA's expectation to
ensure appropriate protection and fair treatment of customers.
As a result of the Requirement, the Company is unable to release
to clients any funds at this time without the FCA's consent in
order to ensure that all customers are treated equally and in an
Should clients have any queries we have a dedicated telephone
number for that purpose. Please do not hesitate to call 01282 610
Hume Capital Securities plc
Behind the name - Why Hume?
Will the sun rise tomorrow? The most
basic of questions cannot be answered with certainty, only a high
probability. David Hume (a Scottish philosopher, historian,
economist, and essayist) demonstrated this. The same is true for
investing. We believe investing money is a balance of
probabilities, where only objective analysis and experience can
deliver longterm returns.
Corporate Status Update
Published on 02 March 2015
Hume Capital Securities Corporate Activity - February 2015
Published on 12 February 2015
Hume Capital Securities Corporate Activity - January 2015
Published on 29 January 2015