Financial Advisory
Forvismazars
Full Credential Description
Pritchard Stockbrokers Limited faced significant challenges after being forced to cease trading by the Financial Authority (FSA). The FSA raised concerns regarding the companys failure to adequately protect client assets and the improper use of client money for its own account. With approximately 11,000 clients and assets exceeding £400 million, the situation was critical. Prior to the appointment of Mazars, the companys directors had attempted to sell certain assets, including customer lists and client stock assets, but failed to transfer these stock assets properly, complicating the situation further. Mazars was engaged to assist the directors in navigating the complexities of the special administration process. The firm undertook detailed reconciliations and transfers of client stock assets valued at around £400 million. A significant part of their work involved investigating the shortfall in client monies held by the company. This included thorough reconciliations of client records to determine the amounts owed to each of the 11,000 clients, with the goal of returning as much of the client assets as possible in a timely manner. Throughout this process, Mazars collaborated closely with the FSA and later the Financial Conduct Authority (FCA), providing regular updates on their findings and the management of client assets. Their investigations also supported the Insolvency Service in examining the conduct of the companys directors, leading to significant repercussions. Two directors were fined and banned from the financial industry for their reckless actions, while the Managing Director and Financial Director received disqualifications of 8 and 6 years, respectively, for misleading the FSA and breaching financial regulations. As a result of Mazars extensive investigations and efforts, all potential recoveries were maximized, and a significant settlement was achieved in relation to a dispute, demonstrating the effectiveness of their tailored approach to this complex financial case.