Jarvis Securities Share Discussion Threads

[topvest] 13/11/2023 15:08

Relieved that I exited my last half at 119p. I suspect the phase 1c is a Customer Duty issue if no interest is being passed on. It looks like a phase 2 report is likely. This just goes on and on - it looks a good year away from being concluded, 6 months best case. I reached the conclusion previously that the quality of their customer base was low - the tide is going out and they have been caught with their trunks down! Lesson learnt from me - understand who a companies customers are. Jarvis have never been transparent on that point.

[saucepan] 13/11/2023 14:37

I should add that today's news confirms that re-investing in Jarvis is not for me at this current time, so I won't post here any more unless I change my views. I don't want to make a nuisance of myself.

Good luck to holders whatever you decide to do with your current positions and I am sorry for the pain you are experiencing.

[saucepan] 13/11/2023 14:23

Well, with regard to post 3261 above, it turns out to be "option (c)".

I am surprised you are so sangunine, tenapen.

Do you not think the following new area of investigation is a worry: "Phase 1c will review JIML's approach to uninvested client cash, interest retention and term deposits"?

Doesn't that raise the possibility (probability?) that the FCA does not like what Jarvis has been doing? Isn't creaming interest from investor funds a significant contributor to Jarvis's profits?

See below quoted from the 13 July interims:

"Fortunately, interest rates have continued their upward trend over the past six months which, whilst painful for companies with debt, has been beneficial for Jarvis. The additional income has offset the reduction in commission and fees from lower volumes and the reduced number of model B clients. Interest income has always been a significant contributor to the business model enabling Jarvis to maintain its fixed low-cost commission which has not been increased for over 12 years despite rising costs and the recent high levels of inflation."

Reduction in commission and fees from lower volumes; loss of clients; and possibly loss of interest income; and possibly fines - makes for a very distressing story.

[steelwatch] 13/11/2023 14:15

"Phase 1c will review JIML's approach to uninvested client cash"

Wondering what that will mean for future dividends? If they have to start paying interest to clients, many of whom will be non-JIM shareholders, that may have some negative impact on future dividends for those of us who are holders. No idea what the ratio of non-holders to holders is, but it's probably considerably weighted to the former.

[skyracer] 13/11/2023 13:21

Well actually I see this as positive news. The FCA are giving JIM a really thorough and necessary review and at the end clients will know their investments are safe and the systems have been approved by the FCA. I was expecting greater costs and pleasantly surprised that JIM look like they will still turn in a decent profit, I presume higher interest rates will be helping. What matters is the ongoing profitability, the costs can be presented as exceptional as many companies do.

[tenapen] 13/11/2023 13:12

At least we know where they are.

Not great but knowing nothing was worse IMHO

[maddox] 13/11/2023 13:02

DIVIDEND UPDATE COMPANY UPDATE released 12:52 13Nov

Dividend Update

In line with current market expectations, the Company confirms that it is not declaring a fourth quarter dividend (total interim dividend for the twelve months ended 31 December 2023: 8.75p).

Company Update

The Company also provides a further update on the skilled person review announced on 16 September 2022 (the "Announcement"). The Company advises that pursuant to section 166 of the Financial Services and Markets Act 2000 ("s.166") ("FSMA"), an additional review (known as phase 1c) ("Phase 1c") is required by the FCA to be undertaken in respect of its subsidiary, Jarvis Investment Management Ltd ("JIML") . Phase 1c will review JIML's approach to uninvested client cash, interest retention and term deposits. The voluntarily agreed restrictions on new Model B business and assets, as detailed in the Announcement, remain in place.

The Phase 1C report is due to be delivered to the FCA, by no later than 28 February 2024. Further updates will be provided as appropriate.

The FCA have also provided additional direction for the pre-existing Phase 2, if required. This phase would include a review and assurance report on the remediation work undertaken by JIML on the matters raised in any of the s.166 reports. This review may be required before the voluntary restrictions on JIML's new business and assets can be lifted. As previously announced, whilst these restrictions remain in place dividends payable by JIML to the Company, and therefore dividends payable by the Company, may be reduced and or delayed.

Finally, the Directors confirm that the costs associated with the s.166 process, including reports and remediation work, are expected to exceed £1.3m in the current financial year (for the twelve months ended 30 December 2023) (unaudited). Further updates will be provided, as appropriate.

Despite these challenges, Jarvis continues to trade in line with current market expectation.

[fegger] 13/11/2023 10:21

New Finance head will be reviewing everything. So not surprised if a delay but doesnt look good for dividends at this stage. Price going down all the time.

[n0rbie] 13/11/2023 10:15

Still notihng, wtf is going on.

[tenapen] 10/11/2023 17:25

Great to see people take the time.

n0rbie, That's the email I used.

Such a shame there was no RNS today. I was hoping it would be just the one day late. I'm wrong again :-/

[n0rbie] 10/11/2023 17:15

"A dedicated email address is provided on the website for investor queries"

What is this email address? All I see is the one listed here which does not appear to be a dedicated email address for investor queries.

[evaluate] 10/11/2023 13:50

I have done.

[tenapen] 10/11/2023 07:29

.... A dedicated email address is provided on the website for investor queries. The contact phone number of the managing director and finance director are given on RNS announcements issued.....

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If anyone else with a interest in Jarvis has time to send out a questioning Email asking what is going on.

[saucepan] 09/11/2023 18:47

Failure to keep to a published date is something of a further red flag, I fear, and certainly does not inspire confidence.

[tenapen] 09/11/2023 16:58

QCA compliance

2; Seek to understand and meet shareholder expectations
The board have been and remain committed to a progressive dividend policy of regular quarterly dividend payments. Jarvis maintains its own investor website to avoid any confusion with the share dealing platform of JIM. A dedicated email address is provided on the website for investor queries. The contact phone number of the managing director and finance director are given on RNS announcements issued. Jarvis holds an annual general meeting to which all members are invited and at the end of the AGM time is set aside specifically to allow informal questions from attending members to any board member.

[tenapen] 09/11/2023 16:53

:::GROAN:::

I have no words :-/

[steelwatch] 09/11/2023 16:40

Q4 2023

Latest Announcement Date: 09 November 2023

Perhaps there won't be any!

[steelwatch] 09/11/2023 10:05

Tik tok, announcement re dividends due today...

[knil] 07/11/2023 13:12

Thanks Saucepan
Good advice.
No need to risk all your eggs in one basket when the monies can be spread around other providers keeping things within the £85,000 limit.

[tenapen] 07/11/2023 06:06

On a plate for you - how good am I !.


tenapen5 Nov '23 - 17:40 - 3221 of 3248 Edit
0 1 0
The Board of Jarvis provides a further update to the announcement on 31 March 2023 on the Skilled Person review as announced in its update on 16 September 2022.

The Skilled Person reviewed the systems and controls of the Company's subsidiary, Jarvis Investment Management Limited ("JIML"), pursuant to s166 Financial Services and Markets Act 2000 ("FSMA") ("Skilled Person"). The Skilled Person conducted the review and testing, as part of the second stage of its work originally agreed with the FCA.

The Skilled Persons has completed its review of JIML's system and controls and provided its report, including its recommendations, to JIML and the FCA on 24 May 2023. As a result, JIML has adopted a remediation plan which it expects to have substantially completed over the next two to three months. The Company expects the Skilled Person will review and report on the remedial steps implemented by JIML in Q4 2023.

The voluntarily agreed restrictions, as set out in a previous update, remain in place. JIML will continue to work with the Skilled Person and FCA with the aim of having the restrictions lifted on its impacted Model B clients as soon as possible.

The Board will provide a further update in due course.'

[tenapen] 07/11/2023 06:01

Quote Jaknife - They are limited to what can be said by the company but may be able to add a fews words to this weeks Q4 divi declaration / company announcement." [from post 3235]

I think that that leaves space for a dividend of zero to be declared.

----

In my email I was asking Jarvis if there was a chance of adding ba few words with this weeks corporate announcement. Something I've said here. That is all, I didn't ask for a update on the investigation or any timeline.

If all you guys that have suddenly started posting here with ISA accounts read back a few pages. I c/p the bulk of a RNS from May. The investigation is Over - Jarvis will take 2-3 months to apply the remedial repeat remedial work ....

[saucepan] 06/11/2023 22:31

The example of: "holding £300,000 worth of Shell shares within an ISA would be safe".

Not necessarily so!

If the Company in question was fraudulent (and I am not for a minute suggesting this is the case for Jarvis) you might have thought you had invested £300,000 in your ISA but if the fraudulent Company had used all of this for nefarious purposes (despite £300,000 showing on your investor portfolio interface), you would not get all of this money back if the whole thing had been a scam. You would only (eventually) get £85,000 of this money back: the amount guaranteed by the FSCS.

If you are fortunate enough to have assets greater than £85,000, it is probably worth spreading your funds over more than one broker. This is what I do. Just in case. I know such a scenario is unlikely, but why take the risk?

Think of what Maxwell did with Mirror Group pensions, for example. "Langbar International collapsed in 2011 after the AIM-listed firm vaunted £370 million of bank deposits that turned out not to exist" (Google).

Massive fraud in respected UK Companies is not exactly unheard of.

mercury123: that could be a good decision! I am not here to deramp; simply pointing out risk.