Merchant Capital has confirmed that all of the non-cash assets worth £310m that were held with Pritchard Stockbrokers have been transferred to new custodian Ryker Securities, while cash assets are still frozen.
Last month, Merchant Capital appointed Reyker Securities to handle client monies in its structured products division to replace Pritchard Stockbrokers after it was suspended by the Financial Services Authority (FSA) and told not to carry on any regulated activities by the FSA.
This morning, the FSA has confirmed that Pritchard Stockbrokers has entered the special administration regime and Timothy Ball, Roderick Weston and Alistair Wood at Mazars LLP have been appointed joint special administrators.
This week, in a letter sent to investors, as seen by Money Marketing, Fundweb’s sister publication, Merchant Capital said some investors’ income payments have been delayed after the FSA suspended former custodian Pritchard Stockbrokers.
The letter also said: “There are some residual client cash holdings at Pritchard that will remain frozen and the FSA is working with Pritchard to understand the position with regard to these client money holdings.”