Bridge Company Recovery has been appointed to oversee the initial ever commercial voluntary arrangement (CVA) of a stockbroker within the UK.
Stock broker Wills & Co attracted wide media attention after the Financial Services Authority (FSA) clamped-down on the firm and banned it from giving investment advice following accusations of mis-selling.
In October 2007, the FSA fined Wills & Co £49,000 for giving poor risk warnings and misleading information to customers – often inexperienced members of the public – who bought high risk “penny shares”.
Since the firm was banned from giving advice, the group ceased trading resulting within the FSA petitioning for a winding up order against the firm.
Last month, the company’s creditors approved its proposal for a CVA resulting within the FSA withdrawing its demand for the closure of Wills & Co.
Tony Murphy, partner at Bridge Company Recovery, said he was confident that the CVA would provide creditors with the maximum repyament.
It is estimated that unsecured creditors are likely to receive 19.1p within the pound returns.