Leeds-based Tenet Group has stepped in with a rescue package to save Merchant House Financial Services, after it announced it had gone into administration.
Tenet has acquired certain business assets of MHFS and intends to transfer all the company’s advisers into its ‘Aspire Financial Management Limited’ in-house AR.
The move affects approximately 70 MHFS advisers, who will now be able to carry on trading with the minimum of disruption.
Mike O’Brien, managing director of Tenet Connect & Tenet Select, said: “Our main priority was to ensure continuity for customers, the advisers and a small number of staff who will also transfer to Tenet.
“This is not the first time we have provided this type of support and it demonstrates one of the major benefits of being part of a well-established and financially-secure network. Income streams are protected and there is no threat of the FSCS becoming involved in any claims.”
MHFS joined Tenet as an authorised representative at the start of 2011.
FTAdviser revealed in January 2013 that Merchant Capital, subsidiary of Merchant House Group, was likely to be put into liquidation.
The came after Reyker, which was the custodian of Merchant House’s structured product arm, terminated its relationship with the firm with immediate effect.
Reyker refused to comment further on Merchant House when approached but a news announcement posted on Reyker’s website suggests that Merchant may be having liquidity issues.
