Wealth manager Blankstone Sington Limited entered special administration on Friday (13 October), following a Court Order under the Investment Bank Special Administration Regulations 2011.
According to the Financial Conduct Authority, the directors of the authorised firm, which is a member of the London Stock Exchange and is based in Liverpool, had resolved to place the company into special administration and applied to court for an order to do so.
The regulator went on to report that in November 2021, it took temporary action to prevent the firm 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 its written consent.
Blackstone Sington was required to place a notice on its website informing clients about the restrictions.
‘Client assets safe’
The notice said joint special administrators Andrew Poxon, Alex Cadwallader and Hilary Pascoe of Leonard Curtis had secured client assets and that “clients are assured that their assets are safe”.
In a client letter from Leonard Curtis, the administrators said they considered 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 letter also explained that clients would not have access to their assets until a transfer to a new broker has been made.
The FCA said that customers with any questions about the process could contact the administrators for further information.