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Clarkson Hill unable to undertake regulatory activities

National IFA firm Clarkson Hill is no longer able to conduct any regulated activities.

In a statement to the stock market this morning, the firm says as a result of a variation in its regulatory permissions it has been unable to undertake regulated activities since 5pm December 3.

Clarkson Hill says it is looking at a number of options including selling the firm and is continuing discussions with the FSA.

Last month, the Cambridgeshire-based firm had its shares suspended for the second time this year pending clarification of the company’s regulatory position.

In October it announced it was in take-over talks after it emerged over the summer that a £558,000 loan to the company from director Ron Pritchard and managing director Mike Robinson was not approved as being enough to boost its capital sufficiently.

In July the firm revealed it was subject to a regulatory review of its systems and controls during the second half of last year, as it posted pre-tax losses of £636,699 for 2009.


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There are 8 comments at the moment, we would love to hear your opinion too.

  1. How strange it is that the FSA seems determined to stamp out the IFA ‘cottage industry’ when it often appears to be the large companies that suffer financial problems.

  2. Any investigation must look at regulatory impact.

    If a national IFA firm listed on the Stock Exchange can sink, trhere is little hope in the current climate for the sole trader.

    If the FSA conduct the investigation, they will find themselves without blame.

  3. I hope Mr Wingfield won’t mind if I disagree with his pessimistic view for the sole trader.

    It is the large companies that seem to need to write high volumes of new business on tiny profit margins who are most at at risk. Even the smallest downturn in business levels or the smallest increase in base costs will tip some companies over the edge.

    Sole traders and two or three man bands with a loyal client bank and reasonable trail income usually have a much more resilient profit margin to see them through bad times.

    In my view, and despite the best efforts of the FSA to get rid of them with RDR, MMR etc, sole traders will continue to be the thorn in the side of the FSA for at least another decade or so, by which time most will have retired.

  4. Don’t you feel sorry for the advisors caught up in the this and the clients that are left stranded.

    Whilst I know that the FSA focuses on both big and small firms, it does seem to me that the maximum damage is done by the big firms when this sort of things happen.

    At least if you trade under your own banner directly regulated you know that you stand or fall on your own merits, not because some directors or senior management let things go down the tubes!

  5. And what will become of CH’s RI’s? I imagine many of them may be fearful that the FSA will ensure they suffer the same fate as the ex-Park Row people, the poor devils. Bad times and getting worse.

  6. Big or small,it does not matter to Sants and Turner, they will still raise a glass and have a good Christmas at our expense.

  7. The management were blinded by the bright lights of becoming a public listed company and climbing towards a top 10 UK IFA in the hope it would attractive a buyer at the sacrifice of having any true value. With RDR on the horizon reducing the value of companies ready to exit the CHG group buckled under falling business levels and a complete lack of profits – making it worthless. RP & MR desperately tried to save this sinking ship they sank themselves through complete mismanagement. RIP CHG

  8. As an existing CHG adviser I sincerely hope that we’ll not end up like the poor ex Park Row guys who through no fault of their own have had to wait a quite ridiculous period of time to be reauthorised.

    I also hope that CHG will not be able to wriggle out of its contractual obligations to me and others by going into administration prior to any takeover. If they do so I hope that the FSA throws the book at them.

    The current management team couldn’t organise the proverbial knees up in a brewery – they are way out of their depth.

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