Clarkson Hill in staff talks
Clarkson Hill is rumoured to be in talks with appointed representatives later today as concerns continue over its regulatory capital requirements.
There has been no trading activity on its alternative investment market listing since markets closed on Monday 2 August.
The national IFA firm has been in continuing discussions with the FSA over its regulatory capital requirements despite borrowing £588,000 from two directors.
Ron Pritchard and Mike Robinson, two of the directors of the company, have provided subordinated loans, yet to be approved by the FSA, to be repaid after two years at 5 per cent interest per annum.
The loan was announced on Tuesday, 20 July, but followed up with an announcement on Friday, 23 July, which said: "On 20 July, 2010, the company released an announcement stating that the directors believed that sufficient funds had been provided to meet the company’s regulatory capital requirements.
"While this remains the directors' belief, the company remains in discussions with the FSA about a number of issues, including its regulatory capital requirements. The company would also like to clarify that the loans have not yet been approved by the FSA."
Clarkson Hill's 2009 annual results showed a group operating loss before exceptional costs of £104,999 attributed to "reorganisation and additional regulatory requirements placed on the group”. It incurred £129,320 of costs from redundancies and the renegotiation of office contracts and £230,787 in order to meet the requirements of the FSA to review and then revise the group’s processes and procedures.
Bill Moncrieff, managing director of Clarkson Hill, said the company was still trading and there were only the usual monthly regional meetings taking place today.
He said there were still no updates on talks with the FSA over its capital requirements.
