FSA yet to approve Clarkson Hill director loans
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Clarkson Hill is still in talks with the FSA over its regulatory capital, despite the directors loaning the company £588,000.
In a statement posted on the London Stock Exchange today, Clarkson Hill says that the £588,00 loan made to the company by chief executive Ron Pritchard and managing director Mike Robinson has not yet been approved by the regulator as being enough to bolster the firm’s capital position.
Today’s statement follows an earlier announcement on July 20 in which the company said that it believed the loan was sufficient to meet its capital requirements.
The statement today says: “Whilst this remains the directors’ belief, the company remains in discussions with the FSA about a number of issues, including its regulatory capital requirements. The company would also like to clarify that the loans have not yet been approved by the FSA.
“A further update will be made to the market in due course.”
The national IFA revealed that it needed more capital earlier this month as it posted pre-tax losses for 2009 of £636,699, compared to the £669,207 losses reported for the previous 17 months.
The Cambridgeshire-based firm, which has around 110 member firms, also ran up exceptional costs of £230,787 due to a regulatory review of its systems and controls last year. The firm says its procedures are now in line with FSA requirements.
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