02/Sep/2014 - Last News Update: 00:01

Pritchard Stockbrokers banned from trading

Category: Scotland

Published: 13th Feb 2012 20:51:25

A stockbroking company which has Rangers owner Craig Whyte as board secretary has been banned from further trading by the financial regulator.

The Financial Services Authority has ruled that Pritchard Stockbrokers had used client money for its own expenses, "thereby putting client money at risk".

That means it "failed to comply with the proper standards and failed to act with integrity".

Pritchard has a right to appeal against the ruling.

The FSA's supervisory notice, issued on Friday, said that the firm should cease any regulated activities, except to close out transactions which had already been started.

It also froze Pritchard's assets, and instructed it to tell all its clients that it had been barred for working for them.

The regulator listed the reasons for action against the Bournemouth-based company as failing to arrange adequate protection for clients' assets when it was responsible for them.

It allowed client money to be used on Pritchard's own account and not that of clients.

In failing to meet the threshhold conditions set out under FSA rules, it said it was "not satisfied that Pritchard is fit and proper" to continue carrying out the investment role it has had since 2001.

In the most recent published accounts of Pritchard Stockbrokers, on 30 June 2011, the company had £17.1m of funds held on behalf of clients.

There was a further £8.8m held on behalf of Merchant House Group, which has a 10% stake in the stockbroker.

While Mr Whyte is company secretary, his main investment vehicle, Liberty Capital, invested £250,000 in Pritchard. That is earning a 10% interest rate, repayable in 2015.

BBC News External Link Show Citation

Latest News

Harvard Citation

BBC News, 2012. Pritchard Stockbrokers banned from trading [Online] (Updated 13th Feb 2012)
Available at: http://www.ukwirednews.com/news/225147/Pritchard-Stockbrokers-banned-from-trading [Accessed 2nd Sep 2014]

News In Other Categories

  • China accuses MPs of Hong Kong 'interference'

    The Chinese authorities have accused British MPs of interfering in Hong Kong's affairs, Newsnight has learned.
  • West Ham sign French midfielder Morgan Amalfitano

    West Ham have signed French midfielder Morgan Amalfitano from Marseille on a one-year deal.
  • Boris Island airport plan 'to be rejected'

    A plan for an island airport in the Thames estuary will be rejected, the BBC understands.
  • Game of Thrones swordsman joins Star Wars film

    Actor Miltos Yerolemou, best known for his role in the first series of fantasy drama Game of Thrones, has joined the cast of Star Wars: Episode VII.
  • Game of Thrones swordsman joins Star Wars film

    Actor Miltos Yerolemou, best known for his role in the first series of fantasy drama Game of Thrones, has joined the cast of Star Wars: Episode VII.
  • Bristol Academy extends reach overseas with first foreign students

    With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com