With debts of close to half a million pounds the Financial Services Authority (FSA) has ordered the ...
With debts of close to half a million pounds the Financial Services Authority (FSA) has ordered the liquidation of securities firm Barum House in the Scottish courts.
The financial regulator issued a petition in the Edinburgh Court of Session for the closure of the Aberdeen-based stockbroker to protect consumers.
In February the Securities and Futures Authority (SFA) asked the FSA to exercise its power to apply to have the firm wound up under section 72 of the Financial Services Act 1986. The FSA consequently presented a petition to the Scottish court seeking the winding up of Barum and the appointment of a provisional liquidator.
Grounds for liquidation include alleged misappropriation of the funds of at least one customer and alleged unauthorised trading on customer accounts leading to trading losses. As a result of the SFA's intervention Barum House was no longer able to lawfully continue its SFA-regulated investment business and has ceased trading.
At the court hearing, of which Barum's solicitors were notified but did not attend, John Reid of Deloitte & Touche was appointed as liquidator. With no objections lodged in the eight-day period following the advertising for winding up Barum House, the FSA is to now proceed.
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