Pritchard Stockbrokers administrator Mazars has accused WH Ireland of withholding a £250,000 payment following its acquisition of 8,000 Pritchard private clients and £400m in non-cash assets under management.
In February, the FSA suspended Pritchard’s permissions due to concerns about the way it handled client assets and monies.
Following the suspension, WHI agreed to pay £250,000 on completion of the acquisition deal and a deferred payment of £250,000 once the assets had been transferred.
Pritchard went into administration in March and Mazars was appointed special administrator.
In a progress report published last week, Mazars said: “The deferred consideration of £250,000 was due to be paid on 28 August 2012. On 22 August, a letter from WHI’s solicitors was received disputing the payment of the deferred consideration and, consequently, these funds were not received on the due date.”
The progress report also states Mazars is chasing WHI for £100,000 VAT on the £500,000 total payment. The matter has been passed to Mazars’ solicitors.
WHI and Mazars declined to comment.
Access Wealth Management partner Jim Clancy says: “This kind of dispute is always going to come back to what is set out in the contract. It is important to make sure all parties interpret contracts in the same way to avoid problems arising down the track.”