On 10 February 2012, we issued a Supervisory Notice stopping Pritchard Stockbrokers Limited carrying out its business. In addition, we have frozen the firm’s assets and the investor money and assets it holds. Here we explain what it means if you are an investor with the firm.
Why has the FSA taken this action?
We have serious concerns about the way that Pritchard Stockbrokers has been running its business and handling investor money. We are concerned that the firm has failed to adequately protect the money that it holds on behalf of investors, and has allowed this money to be used to meet its own costs.
What will happen to my stock market investments?
On 29 February 2012, another stockbroker, WH Ireland announced that it had taken charge of assets belonging to the majority of Pritchard Stockbrokers’ customers. This means that, in the near future, former customers of Pritchard Stockbrokers should be able to start dealing again through WH Ireland. WH Ireland will inform customers of timings.
What will happen to my money?
On 9 March 2012, administrators were appointed to Pritchard Stockbrokers because the firm can’t pay its debts. They were appointed under the Special Administration Regime. This is an arrangement for firms that hold customer assets and money.
The administrators, Mazars will be responsible for checking the cash position and will then return the cash.
What happens next?
Customers of Pritchard Stockbrokers should, therefore, hear from WH Ireland and the administrators in the near future.