The Clarkson Hill Group has accepted in principle an offer from Merchant Capital and the firms are battling to secure FSA permission to bulk transfer advisers, Money Marketing understands.
Mechant Capital, the corporate finance, investment advisory and stockbroking firm, has agreed to structure a new advice business to roll the Clarkson Hill advisers into, if the regulator grants a transfer.
On July 20, Clarkson Hill directors Ron Pritchard and Mike Robinson offered to make subordinated loans to the firm of almost £600,000 to meet capital requirements, which the FSA refused to accept. On December 3, the FSA removed Clarkson Hill’s regulatory permissions and compliance director Martin Field left on the same day, according to the FSA register.
The Merchant Capital deal is designed to ensure Clarkson Hill’s advisers can resume trading with clients as quickly as possible if a transfer completes.
Another firm, Moneygate, confirmed on Friday that it had been conducting due diligence on Clarkson Hill for three months with an eye to a possible deal but attempts to contact the group’s directors had gone unanswered for two weeks.
Moneygate said it has approached the FSA to try to secure permission for a bulk transfer and the regulator is understood to be considering the request.