Scheme considers liquidated structured products manager liable for some costs incurred by investors
From Keydata to Reyker: Clients continue to pay the price
The custodian of ex-Merchant Capital structured products, Reyker Securities, has said it will levy charges on about 12,000 people invested in the schemes.
Merchant House Group (MHG) has entered administration for reportedly failing to honour guarantee that it would pay liabilities relating to its structured product arm, Merchant Capital.
Reyker Securities, the custodian and administrator for the structured products division of Merchant House, Merchant Capital, has terminated its relationship with the company with immediate effect.
Merchant House has said the "complex" process of re-authorising advisers following its acquisition of IFA group Clarkson Hill in 2010 was a big contributor to group losses of £5.6m last year.
The Financial Services Compensation Scheme (FSCS) is to begin sending application forms to customers of Pritchard Stockbrokers Limited in the comings weeks so they can claim compensation.
Just 0.1% of Merchant Capital clients owed money by Pritchard Stockbrokers will not be covered by the Financial Services Compensation Scheme (FSCS), according to Pritchard's administrators Mazars.
Merchant House Group will recommence trading ordinary shares on Aim at 12pm today following the suspension of shares on March 29.