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Special administration sees 99% returns 28 October 2013

The special administration of collapsed stockbrokers Fyshe Horton Finney Limited (FHF) will result in 99% of non-corporate clients being fully repaid by Christmas, according to administrators.

Paul Boyle and David Clements of Harrisons were appointed as joint special administrators to FHF on 20 March 2013.

The company is only the fourth to be placed into special administration by the Financial Services Authority (FSA) since regulations were put into place following the collapse of Lehman Brothers.

The administrators have secured a deal with the Financial Services Compensation Scheme (FSCS) resulting in all qualifying clients, with agreed claims, receiving compensation of up to £50,000 by December 2013.

Paul Boyle, head of national practice at Harrisons, said: “Based on our current understanding, we estimate that 99% of non-corporate clients will recover in full all of their pooled money.”

“The position is less clear for corporate clients and they will need to take advice on their possible entitlements under the FSCS guidelines.”

The administrators have confirmed that client money distributions – returned to clients by either Harrisons or the FSCS through the agreed mechanism – totals £10.9m of a possible £16.6m (66%), compared with £9.3m out of a possible £23.7m (39%) in the previous comparable special administration of Pritchards Stockbrokers Ltd in 2012.

The Special Administration Regime (SAR) for investment banks was introduced in February 2011 to improve the process where an investment bank fails.

MF Global UK Ltd, Worldspreads Ltd and Pritchard Stockbrokers Ltd are the other three companies that have been through the special administration process.

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