Clarkson Hill FSA talks continue despite loan
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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 last Friday, 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.
The statement followed an earlier announcement on July 20 in which the company said that its directors believed the loan was sufficient to meet its capital requirements.
Friday’s update said: “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.”
The national IFA revealed that it needed more capital earlier this month as it posted pre-tax losses for 2009 of £636,699 compared with 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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