Merchant Capital selects Reyker Securities as custodian of client monies
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Merchant Capital has appointed Reyker Securities to handle client monies in its structured products division to replace Pritchard Stockbrokers after it was suspended by the FSA earlier this week.
The FSA announced earlier this week that Pritchard Stockbrokers, which holds client monies for Merchant Capital’s structured products division, had been told not to carry on any regulated activities by the FSA.
The FSA took action based on “serious concerns” that Pritchard Stockbrokers had “failed to arrange adequate protection for clients’ assets when it was responsible for them” and “allowed client money to be used on Pritchard’s own account and not that of clients”.
Earlier this week, parent company Merchant House Group announced that it was “in the process of making arrangements for the handling of client monies with alternative providers”.
Yesterday, the firm said it “cannot at this time determine whether clients of Merchant Capital may suffer some economic loss”.
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