View the article online at http://citywire.co.uk/wealth-manager/article/a679758
Liquidators find £1 million hole in Fyshe Horton Finney’s books
by Sarah Miloudi on May 16, 2013 at 07:42
Fyshe Horton Finney’s administration has fallen into disarray, with a £1 million cash shortfall being uncovered by liquidators.
Fyshe entered voluntary administration in March following board-level disagreements and delayed expansion plans.
Clients are now facing fresh uncertainty over missing money and a long wait for their holdings to be valued.
Harrisons, the appointed administrator, has been combing the books for months and while it has given regular updates to Fyshe clients, concerns have been raised that investors have been unable to trade on their accounts without paying fees to the book’s new owner, Redmayne-Bentley.
One said an account had been untradeable since mid-March and voiced concerns about the ‘unbelievable’ cost of the administration, which currently stands in the region of £547,623.
Adding to this, documents seen by Wealth Manager revealed that – against Harrisons’ instructions – transactions have taken place in bank accounts that were ordered to be frozen.
These resulted in a swing from a credit balance of £29,000 to a £33,000 deficit. In the same documents, a discrepancy has been noted against two million client units.
David Clements, a director at Harrisons and one of the joint special administrators, said liquidating Fyshe had proved a ‘complex’ process, but he reassured clients they would soon receive their valuations and that Harrisons had been ‘completely transparent’ throughout.
He added that the position on client cash was still being clarified, but when it came on board as administrator the firm discovered ‘there should have been more money than there was’.
Claims totalling £17.5 million had come in versus a balance of £16.5 million, Clements said.
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