RJ Temple founder Richard Temple has received a £506,000 fixed payment as part of the £1m Lighthouse rescue package.
Money Marketing has learned that the repayment of the sum was part of the deal for the collapsed IFA.
The settlement was made for the goodwill and assets of RJT before the rest of the business was put into liquidation.
In a statement to liquidator KPMG, the former RJT directors attribute this sum to new money advanced by Alexander Richard Holdings chairman Temple during the course of the sale to ensure that RJT was in a position to meet obligations.
Richard Temple says: ” I was never a director of the company, I was just a shareholder and held a lot of preference shares, the value of which I will probably never see returned. The company was running very short of cash and I was asked if I would put some more in. This was a fixed and floating charge and was lent on the basis that it would be returned.”
Following the closure, an agreement was made that Lighthouse would take on RJT staff liabilities but any future compensation for clients would be dealt with by the Financial Services Compensation Scheme.
Solicitors for new firm Temple Financial Planning, Faegre Benson Hobson Audley contacted former RJT consultants last week to tell them any current RJT debts need to be paid immediately to Temple Financial Planning in addition to any future commission clawbacks.
Hargreaves Lansdown managing director Peter Hargreaves says: “It is always those at the top who are paid first, the clients come last and the FSCS and the industry will be left to pick up the rest of the tab.”