Moneygate has given up on a deal for Clarkson Hill Group but stated it is welcoming applications from the group’s former advisers to join the firm.
CHG announced on Friday it had gone into administration and had appointed Bridge Business Recovery LLP as its administrator.
Earlier this month, Moneygate applied to the FSA for consent to undertake a bulk transfer of CHG advisers. Moneygate has so far spent around £100,000 on the deal in due diligence and advisory costs, in talks which have lasted around three months.
A statement from Moneygate chief executive Lee Hartley says the offer could not succeed without bulk transfer approval.
Hartley says: “I can confirm that we did not acquire the business and assets of CHG despite being involved in the process for the past three months.
“Our offer could not succeed without bulk transfer approval. We hoped to be in a position to achieve this within a matter of days, but we didn’t have all of the elements together when final offers were requested.”
Hartley adds Moneygate is working to allow former CHG advisers to start trading with them in the near future.
He says: “We are currently putting all of the conditions and measures that formed our bulk transfer application into an individual process for advisers that choose to join us – we hope that by doing this we can get advisers into a trading position quickly.
“Internally we have also agreed that the full financial commitment that previously stood behind our offer will be put on the table for advisers to replace lost income – that’s really where our investment needs to go.”