Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a683906
Fyshe administrators & FSCS work around the clock as clients eye summer redress
by Sarah Miloudi on Jun 05, 2013 at 14:57
Clients of stockbroker Fyshe Horton Finney, which went into administration earlier this year, will next month start to receive payouts from the firm’s liquidators.
Speaking to Wealth Manager, David Clements, one of the joint administrators, said he is also liaising with the Financial Services Compensation Scheme (FSCS) as part of a broader attempt to secure swifter redress for clients.
‘Before, we had been doing the reconciliation but now we have got to a position whereby the books and records match with what clients expect. At the end of July or August an interim distribution should be made,’ Clements said.
‘We are liaising with the FSCS to facilitate an arrangement where clients can get paid quickly,' he added.
Clements, a director at appointed administrator Harrisons, stressed that the latest developments do not mean it has now resolved Fyshe’s £1 million black hole.
Last month Wealth Manager revealed the regional stockbroker had a gaping shortfall in client cash after claims totalling £17.5 million came in to Harrisons, yet a balance of just £16.5 million sat on the stockbroker’s books.
While a hole involving two million client units had also been uncovered, the discrepancy over these was likely due to an administrative error, Harrisons said at the time.
The shortfall in cash could not be explained as easily despite the administrator’s team spending more than 1,800 hours combing the firm’s books and piecing together records for its 3,200 individual clients.
More recently, investors at the firm were offered a little cheer as Clements said that now the reconciliation was complete, clients had been sent portfolio valuations.
This had previously been a point of contention, with some clients claiming they had been left unable to trade on their accounts since Fyshe entered voluntary administration in March, when Fyshe cited boardroom disagreements and delays rolling out expansion plans as the reasons behind the business' failure.
For Fyshe, these difficulties proved the final nail in the coffin, given it had already clocked up losses of £922,813 during the last financial year, and accumulated losses of £6.9 million over the seven previous years.
News sponsored by:
Today's top headlines
More about this:
More from us
- Fyshe Horton Finney enters voluntary administration
- Liquidators find £1 million hole in Fyshe Horton Finney’s books
On the road
on Dec 10, 2013 at 12:57