Clarkson Hill directors lend firm nearly £600K

20 July 2010 0:00 am | Updated: 20 July 2010 8:24 am | By Paul McMillan

Clarkson Hill chief executive Ron Pritchard and managing director Mike Robinson have lent £588,000 to the company to help it meet its regulatory capital requirements.

The Cambridgeshire-based national IFA warned earlier this month that it needed to raise more cash to meet the FSA’s requirements.

The company’s results for the year to December 31, 2009 showed a pre-tax loss of £636,699, compared to £669,207 losses reported for the prior 17 months.

The Aim-listed national, which  has around 110 member firms, ran up exceptional costs of £230,787 due to a regulatory review of its systems and controls last year.

Clarkson Hill was also billed £105,000 toward the £80m Financial Services Compensation Scheme levy to pay for claims associated with Pacific Continental Securities UK, Square Mile Securities, Keydata Investment Services and Lehman-backed structured product providers.

Redundancy costs and the renegotiation of office contracts pushed Clarkson Hill’s total exceptional costs to £465,107.

Independent consultants were employed to review the company’s processes and make the necessary compliance changes. The firm says its procedures are now in line with FSA requirements.

Today’s statement to the stockmarket says: “The Company is pleased to announce today that Ron Pritchard and Mike Robinson, two of the directors of the Company, have provided subordinated loans to the Company of £588,000, which the directors believe is sufficient for the company to meet its FSA regulatory capital requirements. The terms of the loans are in the FSA standard format and provide a right to be repaid after two years and for interest of 5 per cent per annum and are approved by the FSA.”

If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing