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
Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Play On the Road Challenge: horsing around on the polo pitch

On the Road Challenge: horsing around on the polo pitch

Libby Ashby takes to the polo pitch with Stuart Leigh-Davies from Redmayne-Bentley for an 'On the Road' challenge.

Brewin's Gutteridge: where Miton's Godber sees value

Brewin's Gutteridge: where Miton's Godber sees value

This week Brewin Dolphin's research head talks to George Godber, co-lead fund manager of the Miton UK Value Opportunities fund, about value investing.

Your Business: Cover Star Club

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Rathbones’ Glasgow office has only been open for three months but the team, led by Angus Kerr, has already attracted new clients

Wealth Manager on Twitter