The Financial Services Authority has confirmed that Fyshe Horton Finney Stockbrokers has entered the ‘special administration regime’, meaning the firm is either unable to pay its debts or likely to be unable to do so in the near future.
FHF is a small investment firm offering discretionary, advisory and execution-only business. The firm’s placement into the regime marks the fourth time the SAR has been initiated by the FSA.
The three other firms that have been placed into the regime since the regulations came into force in February 2011 are: MF Global UK Ltd, Worldspreads Ltd and Pritchard Stockbrokers Ltd. The collapse of all three resulted in substantial Financial Services Compensation Scheme levies for intermediaries.
Paul Boyle and David Clements at Harrisons Business Recovery & Insolvency (London) Ltd have been appointed joint special administrators.
If clients have any concerns they should contact the special administrators in the first instance, the regulator said.
The special administration regime came into effect in February 2011. In December 2012, HM Treasury announced that it is launching a review of the regime, looking into whether the regulations achieve their objectives and whether they should continue to take affect.
Peter Bloxham will lead the review and has already begun work, according to the statement from the Treasury. Mr Bloxham was a partner at international law firm Freshfields until 2006, practising in restructuring and insolvency, with a focus on financial services.
He will make his report to the Treasury by the end of January 2013. If, as expected, he recommends further work, a fuller report will follow by the end of June 2013.