Former investment adviser Gregory Knight, director of advice firms Welbeck Consulting and Welbeck Wealth Management, has been declared bankrupt.
Records from the individual insolvency register show that Mr Knight was declared bankrupt on 1 July. He will be discharged on 1 July 2016.
In a progress report dated 24 February 2015 ReSolve Partners, the administrators, stated they were appointed to manage Welbeck Consulting and Welbeck Wealth Management on 3 March 2014.
According to the report, former employees of Welbeck Consulting were unlikely to receive an estimated £73,000 in unpaid wages and holiday pay because of insufficient funds.
Metro Bank was cited as a secured creditor, with £1.48m due to the bank. However, the report said Metro Bank was unlikely to be repaid in full in the administration.
Mr Knight, a former player for rugby team London Scottish who is listed on the club’s website as a patron member, was a founder of Welbeck Consulting and Welbeck Wealth Management.
He had also served as a director at KLAS International, which offers clients access to services from a network of partner and referral companies.
Information from Companies House showed that Mr Knight’s directorship was terminated on 16 June 2015. KLAS International is still fully operational.
According to the administrators’ report, Welbeck Consulting has acted as an appointed representative of Caerus Group Limited. The FCA’s Financial Services Register shows that from 20 April 2011 to 25 January 2013, Mr Knight held CF4 Partner (AR) status at Caerus Financial Limited. Caerus Group Limited was cited in the ReSolve progress report with reference to various possible avenues for recovering money owed to Welbeck Consulting. This included clawback from advisers and pipeline commission.
Regarding pipeline commission, the report said: “It appeared that commissions totalling £1,215,792 were due from Caerus Group Limited, through 30 financial institutions/product providers.
“It later became apparent that Caerus [Group Limited] had advanced commission to Consulting and was therefore in a negative position once offset had been taken into account.”
The report also noted that Welbeck Consulting had claims against former advisers where the administrators believed sums were owed to the firm in relation to clawbacks on products whose policies had not completed the full term, amounting to £320,670.
It added: “We have so far been unable to contact any other parties who may be qualified to act in this matter and are considering alternative methods of recovery.”
The administrator’s report said Welbeck Consulting’s accounts indicated an investment of £170,602 in Caerus Group Limited, in addition to other debtors and prepayments of £224,069, with prepayment relating to areas such as rent and insurance. Mr Knight has been involved with several financial services firms. According to the Financial Services Register, his profile is inactive but his previous controlled functions include CF1 director (AR) with Caerus Financial, CF21 investment adviser with Zurich Advice Network, which is now Openwork, and CF7 sole trader (AR) with Openwork.
His previous AR relationships include Welbeck Mortgages, which, according to Companies House, was dissolved on 17 February 2015.