The Financial Services Authority (FSA) has confirmed Pritchard Stockbrokers has gone into administration.
Timothy Ball, Roderick Weston and Alistair Wood at Mazars LLP have been appointed joint special administrators.
Last month, the FSA issued a supervisory notice stopping Pritchard carrying out its business. In addition, it froze the firm's assets and the investor money and assets it held.
Another stockbroker, WH Ireland, has since taken charge of assets - but not money - belonging to the majority of Pritchard Stockbrokers' customers.
This means that, in the near future, former customers of Pritchard Stockbrokers will be able to start dealing again through WH Ireland.
WH Ireland is in the process of informing customers of timings. The joint special administrators will review the client cash holdings positions and will return as much cash as possible directly to each client.
Customers of Pritchard have been told to contact the joint special administrators for more information.
Dorset based Pritchard had acted as custodian for monies held in the structured products division of the Merchant House Group until the FSA began its investigation early last month.
Merchant House Group appointed Reyker Securities to the role of custodian of the division several weeks after it ceased business with Pritchard.
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