FSA puts firm into special administration regime

The Financial Services Authority (FSA) has placed Pritchard Stockbrokers into its special administration regime, for only the second time since it was introduced.

Timothy Ball, Roderick Weston and Alistair Wood from Mazars have been appointed joint special administrators.

Pritchard becomes the second firm to be placed in the regime, following the collapse of MF Global earlier this year.

The move follows action by the FSA earlier this year preventing it from carrying out regulated activities.

The firm had held client monies for Merchant Capital’s structured product division before selecting Reyker Securities. (article continues below)

WH Ireland announced it had earlier acquired the assets belonging to Pritchard customers, which the FSA says will allow customers to start dealing again through the firm.

In a statement, it adds: “The joint special administrators will review the client cash holdings positions and will return as much cash as possible directly to each client.”

Rangers owner Craig Whyte was formerly a board secretary at Pritchard.

Pritchard customers have been urged to contact the joint special administrators.

The regime came into effect in February, and is designed to ensure client monies are returned as soon as practicable, but the FSA must consult with HM Treasury and the Bank of England before initiating.