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Clarkson Hill administrators step up efforts to recover commission

by Jun Merrett on Dec 23, 2011 at 07:00

Clarkson Hill administrators step up efforts to recover commission

The administrators of collapsed national IFA Clarkson Hill have placed the company into liquidation in a bid to recover commission owed to the group.

Administrators Anthony Murphy and Robert Horto said the company should move into liquidation 'so that the collection of any outstanding commissions can be completed, and the likelihood of further recoveries can be properly explored'.

Merchant House bought assets of Clarkson Hill after the firm announced it was going into administration in December 2010. Under the terms of that deal, Merchant House has been paying Clarkson Hill pipeline and trail commission payments. Over the 12 months since administrators were appointed, Clarkson Hill has received £179,684 from the group.

However, the administrators have warned over the progress made in collecting commission payments. 'It is the administrators' opinion that the collection of commission receipts has not concluded satisfactorily, and that there may still be further recoveries achieved. The level and timing of these potential recoveries remains uncertain.

It has also appointed third party Phoenix Corporate Managers to review the commission paid to Clarkson Hill in the 12 months since administration. It said Phoenix would examine the level of commission Merchant House had paid to former Clarkson Hill advisers in line with the acquisition deal.

13 comments so far. Why not have your say?

Nick

Dec 23, 2011 at 08:18

Is this going to end up as yet another levy?

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Advisor 1

Dec 23, 2011 at 08:28

sounds like ambulance chasing, maybe they should be looking at the directors who dropped the company in it, rather than the advisors commissions

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Chartered Mark

Dec 23, 2011 at 09:42

This will just be another case of the Administrators getting fat on the fees, spending £1.00 to collect £1.00.

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The ssinnic

Dec 23, 2011 at 10:13

Sad prediction for 2012, and in case some think I enjoy this you are wrong.

But there are going to be more of these:

More "Arch Cru" type scheme failures; more IFAs giving up the seemingly pointless struggle with fees and regulation; more FSA excuses for failure to oversee the markets; rises in fees and levies.

SUPER PREDICTION FOR JAN 2012: Two of the biggest IFA nationals to declare insolvency more or less as soon as the year has started.

Happy New Year to the rest of us and God Bless us one and all!

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Tim Ames

Dec 23, 2011 at 10:41

The World is not going to end. Good people will still need good advice. Let's be positive about the New Year. 2011 has been a tough year for our clients but our job is to explain that financial planning is about a long term plan. Stock markets are cheap and a good time to invest for the long term. Hopefully next year will have less scandals.

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Nick

Dec 23, 2011 at 11:17

I admire your optimism Tim and hope you are right but my gut feeling is you will be wrong.

The markets will drop, perhaps a lot, the Euro may well collapse and there will be many more scandals (I guarantee that bit). In the new year some well known high street names will disappear and a large airline will be absorbed and wound down.

Put up the barricades, shut the gates and prepare for a siege I say!

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The ssinnic

Dec 23, 2011 at 15:07

Funnily enough, Nick, whilst I have to agree about the doomed Euro, the quirkiness of life tells me that amidst all the problems the S/market will actually rise. Markets probably look further forward than most of us and as Tim says, in his very upbeat way, despite gloom in some sectors there is always room for counterbalance and markets in Asia, S America and India could well stimulate growth.

Domestic retailers and IFA businesses are vulnerable though. Sorry about that!

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Peter Kay

Dec 23, 2011 at 15:23

The CHG Administrators are even more incompetent than CHG - Forget about the commission being paid to Merchant House - what about the poor old IFA's (like myself) who are owed thousands of pounds by CHG!

There has not been any contact from Administrators since July- (vene allowing for the Administrators goint into Administration) the FSA should be all over this, but then again they are busy spending the £20mil fine receipts generated in the last few ,months on Christams bonuses etc

Bar Humbug!!!!

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Julian Stevens

Dec 24, 2011 at 11:01

"Commissions owed to the group" ~ presumably by providers? Whilst one can understand providers being reluctant to pay potentially irrecoverable indemnity commissions, what reason/s can there be for them not paying without delay all and any non-indemnity and trail commissions? Surely, the terms of any agency agreements contractually oblige them to do so?

But, as we've seen increasingly over the past few years, ever more providers simply can't be trusted to do anything they say they will, be it either honouring existing commission agreements or providing decent standards of service and administration.

With untrustworthy providers on one side, the over-regulating, over-charging, biased, persecutory and unaccountable FSA on another AND, from 2013, advisers being forced to renegotiate with clients their entire charging and service proposition as soon as any changes are made to existing provisions, is it any wonder that increasing numbers of IFA's are getting so punch-drunk that they're going to be throwing in the towel as soon as they can afford to or looking for a less stressful way of making a living?

And yet, according to Hector Sants, the FSA has no prejudicial agenda against the IFA sector and, if an unknowable percentage of IFA's fall by the wayside on the road to the Great and Glorious New World of 2013 and beyond, well, that's the price of progress, isn't it? Now, how big's my bonus going to be this year?

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Sid Cynical

Dec 28, 2011 at 10:21

I bet Ron Pritchard & Mike Robinson (CHG Directors) are sitting pretty somewhere!

Not Funny

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The ssinnic

Dec 28, 2011 at 13:04

Are you related to me?

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Sam Caunt

Dec 28, 2011 at 15:09

Most if not all providers have a clause that allows them to stop paying commission if the intermediary becomes insolvent - indemnified and non indemnified. Also if they are no longer authorised. This has been the case for years and so I cannot imagine the administrators getting much back.

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richard john brydon

Dec 29, 2011 at 12:58

I was a member of a network that went bust and the former advisers never saw a penny of what the administrators collected. The administrators then sold the business/trail to a third party,FSA regulated, and they got the rest of the money. It seems that the former advisers lose out and so do the clients. After all, the trail is paid out of clients' funds and who asks their permission?

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