Nexus Independent Financial Advisors Limited and Nexus Investment Managers Limited have been sold for a total of £500,000 following restrictions on their activities by the FCA.
The FCA stepped in earlier this year following concerns about a client’s illicit money at a firm in Fairham, Hunts totaling £2m.
Nexus was brought under control following the FCA’s action.
The turnaround firm in charge of management, Leonard Curtis, confirmed this week that, with the consent of the FCA, the sale to London-based Vintage Wealth Management Limited was completed on March 9. . The combined sale of both businesses was for him £500,000.
Carl Faulds and Nicola Layland of Leonard Curtis were appointed co-managers of both Nexus offices by the High Court on January 26th. Leonard Curtis said he was appointed manager “because the sole director was out of business and there were concerns about the behavior of the directors”.
On January 31st, the Financial Conduct Authority issued a supervisory notice imposing restrictions on the trading capacity of Nexus companies.
The manager kept the rest of the management team at Next while looking for a buyer. The company had 60 inquiries and 38 potential bidders. Seven companies participated in more detailed discussions, resulting in four formal offers.
The new owner, Vintage Wealth Management Limited, was formed in 2004 following the merger of two independent financial advisory firms, Aztec Financial Limited and Bond & Stein plc. Many companies are part of the group, including Barnett Financial, Vintage Asset Management, Vintage Wealth Management, Vintage Corporate and Vintage Health. Vintage has also established successful joint ventures with prominent London-based accounting and law firms.
Leonard Curtis said a number of regulatory hurdles had to be overcome as part of the sale process. This includes convincing the FCA that the purchaser has the resources to manage the volume of potential clients being transferred.
Co-Administrator Nicola Leyland said: It was important to all parties that the client’s interests were protected and that the creditors of both companies achieved the maximum possible amount. I would like to thank the management and staff, as well as attorney Moore Barlow, for their assistance in the successful sale. ”
Co-Trustee Karl Folds added:
In February, Nexus Independent Financial Advisers and Nexus Investment Managers were restricted by the FCA from conducting regulated activities related to fraudulent transactions with their clients. The FCA said it intervened because of “very serious concerns”.
The watchdog said it was concerned that the company’s sole director may have deducted money from customers without authorization or without the customers’ knowledge.
Nexus was founded by CEO and well-known industry figure Kerry Nelson. She has had a long career in financial services and was named ‘Personality of the Year’ in 2022 by the trade magazine.
In a supervisory notice, the FCA said company directors may have received a total of £2,072,000 in unauthorized and/or improper withdrawals from the company’s customers. It said the conduct appeared to involve multiple clients and spanned at least the period from September 2021 to December 2022.
Nexus IFA was incorporated on September 27, 2007 (FRN 584769) and was approved by the FCA to conduct regulated activities from November 15, 2012.
Nexus Investment Managers Limited (FRN 610663) was incorporated on 12th August 2013 and was authorized by the Authority to carry out regulated activities from 14th April 2014. A discretionary fund manager.