Liverpool broker famous for dealing in Everton FC shares in special administration
Liverpool broker, Blankstone Sington (BSL), which has more than £400m of funds under management, has entered special administration.
It followed a Court Order under the Investment Bank Special Administration Regulations 2011.
Andrew Poxon, Alex Cadwallader and Hilary Pascoe of Leonard Curtis were appointed joint special administrators on October 13, 2023.
The Special Administrators say they have secured all clients’ assets and safeguarded the Company’s systems. Clients are assured that their assets are safe.
BSL is an FCA-authorised wealth management firm and a member of the London Stock Exchange, and is based in the city’s Exchange Flags office complex.
The firm’s directors resolved to place the company into special administration and applied to Court for an order to that effect.
On November 16, 2021, the FCA (Financial Conduct Authority) took temporary action to prevent BSL from disposing or diminishing the value of its own assets, accepting new client money or new custody assets from existing clients and from opening new client accounts, without the FCA’s written consent.
BSL was also required to place a notice on its website informing clients about the restrictions.
Special administration is a modified insolvency procedure for certain investment firms.
Insolvency Practitioners are appointed by the court as special administrators to take control and manage the affairs of the firm. The special administrators have an objective to return client money and custody assets as soon as reasonably practicable, ensure timely engagement with market infrastructure bodies and authorities and either rescue the firm as a going concern or wind it up in the best interests of the creditors.
The Special Administrators say they consider the quickest and most cost-effective way for client assets to be returned to clients is by way of a transfer to a single broker regulated by the FCA.
The Special Administrators are working to identify a suitable broker for the transfer and several parties have been shortlisted. The Special Administrators also confirmed that they have retained all of the company’s staff to ensure the Special Administrators are able to operate at an appropriate level to facilitate a return of client assets as soon as possible.
Andrew Poxon said: “First and foremost we wish to assure clients that their assets are safe. Our priority is to return assets to clients as quickly as possible and we are in advanced discussions with several parties regarding a potential transfer.
“We are working closely with the board, the FCA, the FSCS and all relevant market infrastructure to expedite a transfer. Whilst we cannot give an exact time frame at the moment for the completion of a transfer, we are working with all parties to avoid any protracted disruption to clients.”
He also advised clients to be wary of claims management companies (CMCs) looking to engage Blankstone’s clients to progress claims for a significant charge.
He said: “Please note that the Special Administrators will continue to liaise with the FSCS to compensate eligible clients directly if required, without the need to engage CMCs. We will keep you informed by way of future updates.”
Leonard Curtis is advised by Drew Sainsbury and Richard Bulmore of Ashurst and Will Jones and Elizabeth Wood of Hill Dickinson.
On November 1, last year, Blankstone Sington, which was renowned for brokering the sale of shares in Everton FC, revealed that it had recorded an annual loss due to the continued impact of actions by the FCA, it said.
The original restrictions were due to the “loss of several experienced staff who cannot easily be replaced”, the firm said.
The company announced last November that it had fallen to a pre-tax loss of £531,731 for the 12 months to May 31, 2022, compared with a profit of £63,618 in the previous year.
Its turnover remained static at £3.2m over the same period but its funds under management fell from £472.4m to £401.8m.
