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.

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.
Your Business: Cover Star Club

Profile: The opportunity set that attracted Brett Williams to wealth management

Profile: The opportunity set that attracted Brett Williams to wealth management

Brett Williams is best known for helping to build some of the biggest platforms in the IFA market.He made the move over to wealth management to head SEI’s UK business earlier this year in the belief that this is where the best opportunities now lie.

Wealth Manager on Twitter