Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Liquidators find £1 million hole in Fyshe Horton Finney’s books

1 Comment
Liquidators find £1 million hole in Fyshe Horton Finney’s books

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.

He said Harrisons is in contact with Lloyds over the unauthorised bank transactions, but it appears that the discrepancy over the two million client units looks to be an administrative error.

In terms of the cost of Fyshe’s administration, Clements pointed out the bill reflected what Harrisons had spent reconciling the stockbroker’s books and that a ‘host of issues’ had been uncovered along the way.

A spokesperson for Redmayne-Bentley, which earlier this year acquired £300 million of Fyshe’s assets from the administrator, stressed that the firm was independent from the liquidation process.    As a result, it was unable to comment on the costs and shortfalls that occurred prior to its involvement.

However, where clients had been asked for payment, the firm said the administrators had identified individuals with outstanding fees.

Redmayne’s spokesperson said: ‘The terms of our agreement to complete the transfer of assets included a requirement to assist in the collection of these debts. 

‘It should be noted that any money paid to the administrators for outstanding purchases should be refunded to clients once the process is complete. We have encountered little resistance to this when it has been explained to clients.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Sam Vecht: the best opportunities in frontier markets

Sam Vecht: the best opportunities in frontier markets

Blackrock's Vecht evaluates frontier markets and explains where he sees the opportunities

Play Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

1 Comment Play Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Our much anticpated new series is here! We hand a black cab driver a tenner and grill the manager of the 125-year Merchants trust until the meter runs out.    

Your Business: Cover Star Club

Profile: meet the duo at the heart of Hargreave Hale's succession plan

Profile: meet the duo at the heart of Hargreave Hale's succession plan

For the first time in the company's history a non-Hargreave is now at the head of the north west broker and asset manager

Wealth Manager on Twitter