FAILED to comply with the proper standards failed; FA.
The financial services watchdog they had "serious concerns" breached the protective legal separates client money from the own account. "Pritchard have allowed client to be used on Pritchard's own and not that of clients," the FSA The FSA said London firm Pritchard had also "failed to comply with proper standards and failed to act with integrity".
The regulator said in conclusion they were not satisfied "Pritchard were a fit and proper person having regard to all the circumstances," as per their own rules s on suitable firms to manage client money.
They added that withdrawing Pritchard's permission to trade s "should take immediate effect to address the FSA's very serious concern that Pritchard may otherwise continue to use client money for their ir own account".In their official censure - called a first supervisory 'Pritchard used notice - the FSA have also frozen the firm's assets.
money An FSA spokesman said: "In common parlance, Pritchard would now need their accounts' FSA approval to transfer any money or assets."
The FSA have also ordered Pritchard to write to all 8000 of their clients within seven days informing them they can no longer carry out regulated financial activities.
Pritchard must also provide the FSA with a copy of this written notification, along with a full list of their clients, again, within seven days.
Whyte joined the board of Pritchard Stockbrokers Ltd as company secretary in July 2009.
The stockbroker, who note their banker after they clients' annual accounts as Lloyds Banking Group, reported profits of just pounds 18,077 for the year to June 30, 2011, against a loss of pounds 9355 a year earlier.
the Pritchard is named as Pritchard, who employed 49 people by the financial year end, reported sales of pounds 2.93million for the year, though admin longer activities money to expenses - the cost of running the business - ran to pounds 2.98million.
The firm also reported a rise in debt from pounds 10.9million in 2010 to said Pritchard wall that firm's pounds 14.75million in 2011, and cash levels dropped from pounds 512,000 to just pounds 827 in the same period. Despite a relatively poor run, their loans and overdrafts to Lloyds Banking Group rose from pounds 562,000 in 2010 to money account, said. 'The pounds 1.11million by June 2011.
The Record has established the FSA have e severa Pritch numbthat frozen several links between Pritchard and a number of companies firm's that Whyte is also associated with. assets' assoc Pritchard have an unsecured loan of pounds 250,000 to Merchant House Securities Ltd, a Hou comin DMePlcnaMSeinrecoInanWh A Co along firms company set up in Cardiff in December 2010 by ember ant House Merchant Group Plc, in which Whyte is a with tactics.
Merchant House Securities Ltd are listed in Pritchard's annual d chant ities itchard's ts any tments er company.. e Two Lansdown Katharine were holding management the financial industry and respectively.
results as a connected company of Cairnwell SLAMMED J Our front page Investments Ltd, another that five Whyte has links with.
client spokesperson Their registered address, 7th Floor, House, Queen Street, shares the same address as Merchant House Group. Aon own oor, Aldermary London, me se orate nwell's ary that Liberty Corporate Ltd were named as Cairnwell's company secretary in May are of 2009 and Whyte joined Cairnwell as a director in July ector advising 2009.Whyte was also a director of Liberty Corporate Ltd, as was his father Whyte, until they were dissolved in (AIM) ctor ather Thomas olved for could out Pritchard's clients clients Wills & in Alternative Market market on shares recently, though suspended in the accounts on The Whyte, who he to administration, "wholly unreliable" by sheriff as ordered traded September 2011. The loan, which matures in July 2014, is being paid at 10per cent interest by n nterest e who Pritchard to Merchant House Group, club failed own the entire share capital of Merchant Pritchard House Securities Ltd. Another pounds 250,000 loan listed by ed Pritchard, also unsecured and repayable intended at 10per cent interest, is owed to Liberty Capital Ltd, based in the British Islands. In a circular to Rangers d h Virgin a to dated June 3, 2011, Whyte said: "Rangers FC Group is wholly owned Liberty Capital Limited," adding: "Liberty is wholly owned by me".
Ironically, Pritchard had already profited from the sharp practice another stockbroking firm.
In January 2010, Pritchard picked 19,000 clients from another London stockbroker, Wills & Co, after they went out of business after having been banned for mis-selling financial products to their clients.
Wills & Co, who were also founded in 1883, ceased trading in January 2010.
the The FSA said in a February 2010 statement: "Wills & Co would have been fined pounds 1.5million had they not been in the process of winding down their business and had a large amount of customer redress due."so-called penny share dealer, Wills & were targeted by the FSA in 2009 with a number of similar or targeting older people high for pressure sales directors, Darren and Prichard, also barred from senior roles services three years in for the FSA not rule some of 8000 former Wills & Co. Co specialised on the which Investment and PLUS Rangers until were time. they January after to file audited ban comes after yesterday place was described on Friday revealed Rangers in as he was a
BOARD n Whyte is Pritchard's company secretary