Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Merchant House structured product future in doubt as custodian severs ties

Merchant House structured product future in doubt as custodian severs ties

Reyker Securities, the administrator and custodian for structured products provider Merchant Capital, has terminated the relationship with immediate effect.

The custodian said in a note it had ended its contract with Merchant Capital, providing services to the firm and its many thousands of structured products investors, as well as its parent company Merchant House Group.

The group said: ‘Reyker has decided that it can no longer continue to provide any services to Merchant and accordingly we have entirely ceased our business relationship with Merchant immediately.

‘Reyker will be making no comment about the reasons for this other than to say that we have consulted fully with the FSA [Financial Services Authority] in advance of taking this course of action.’

Reyker took on the role after Pritchard Stockbrokers entered administration early in 2012. This came shortly after the Financial Services Authority issued a supervisory notice to the firm, preventing it from undertaking further regulated activities.

There is speculation Merchant Capital could be wound down, although the firm was unavailable for comment.

Reyker said its withdrawal from the partnership will see all client money and invested assets remain in its custody bank accounts and investment depots, and emphasised this is ‘securely ring fenced.’

It added there will be no change to the service Reyker provides to investors.  

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 French fund CEOs: 'Brexit is a lose-lose situation for all of us'

French fund CEOs: 'Brexit is a lose-lose situation for all of us'

'We'll all lose out - but London is an international city, Paris is not.' Leading French asset management CEOs tell us what they think Brexit will mean for the investment business.

Play Mark Barnett - part 2: why I'm not buying Lloyds

Mark Barnett - part 2: why I'm not buying Lloyds

In the second part of our exclusive video interview, Barnett explains why he has no intention of buying Lloyds, and where he sees the greatest income opportunities.

Play Wealth managers reveal the best investment ideas of the year

Wealth managers reveal the best investment ideas of the year

From robotics to impact investing, wealth managers share the best ideas they have heard this year.

Read More
Wealth Manager on Twitter