Merchant Capital has confirmed some investors’ income payments have been delayed after the FSA suspended former custodian Pritchard Stockbrokers.
In a letter to investors, seen by Money Marketing, Fundweb’s sister publication, Christopher Day, director of Merchant Capital, says the firm will shortly commence the transfer of assets to its new custodian Reyker.
He says: “Any delayed income and surrender payments will be processed shortly and once the transfer is complete, future income and maturity payments will be paid as normal.”
Merchant Capital, the structured products division of Merchant House Group, refuses to confirm how many investors are affected by the delays or when the payments will be made.
A spokesman says: “Merchant Capital is still working closely with the FSA to ensure a smooth transfer of assets to its new custodian Reyker Securities, which is expected to commence shortly. Regretfully, this has led to a delay in payment of income but this delay will be kept to a minimum.”
The letter also says: “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.”
The spokesman refused to comment on the amount of cash frozen or the number of clients that are affected.