13 February 2012
Merchant House Group plc
("MHG" or the "Group")
Statement re: Pritchard Stockbrokers Limited
MHG notes that Pritchard Stockbrokers Limited ("Pritchard") received a first supervisory notice ("Notice") from the FSA on 10 February 2012.
Pursuant to the Notice:
(i) with effect from 10 February 2012, Pritchard may not carry on any of the regulated activities in Pritchard's Part IV permission (as defined in the Notice), except to close out transactions which have already been commenced; and
(ii) Pritchard's assets (or any assets belonging to Pritchard's customers but held by the firm to its order) held by any institution may not, so long as the requirement is in force, be released, without written authority from the FSA.
A copy of the Notice is available from the following link.
http://www.fsa.gov.uk/static/pubs/final/pritchard_stockbrokers_limited.pdf
Merchant Capital, a wholly-owned FSA-regulated subsidiary of MHG, is a client of Pritchard, which holds all client monies of Merchant Capital's Structured Products (NYSE: KOB - news) division (but not other divisions) in segregated client money bank accounts.
The Group is in the process of making arrangements for the handling of client monies with alternative providers. The board of MHG does not believe that the Group or any of its clients will suffer economic loss as a result of the Notice.
A further announcement will be made in due course.
For further information:
Merchant House Group plc +44 (0) 20 7332 2200
Christopher Day, CEO
James Holmes, Chairman
Cairn Financial Advisers LLP +44 (0) 20 7148 7900
Liam Murray / Avi Robinson
Symvan Securities +44 (0) 20 7464 4260
Kealan Doyle / Nicholas Nicolaides
CityRoad Communications +44 (0) 207 248 8010
Paul Quade
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