4th Dec 2009 12:30
4 December 2009
Merchant House Group PLC ("Merchant House" or the "Company")
Launch of Structured Investment Plan Management Business
Merchant House Group plc ("Merchant House") announces the creation of a new structured investment plan management business which will raise funds from the public via independent financial advisers ("IFAs") to be invested in five year notes issued by established financial institutions.
These plans will be tailored in the form of structured products to meet the varied investment needs of investors, typically either for income or capital growth.
At the same time, Merchant House has taken over the administration of a portfolio of existing investment plans that had been previously marketed and administered by ARC Capital and Income Plc ("ARC", now in administration), amounting in value to approximately £100 million subscribed by some 10,000 investors. Merchant House will provide continuing administrative services in relation to these plans and ensure the payment of interest and capital repayment to investors as they fall due, through its FSA regulated subsidiary Merchant Capital Limited ("Merchant Capital"). Merchant Capital has contracted the handling of investor funds to Pritchard Stockbrokers Limited, a well established South Coast firm of private client stockbrokers.
Merchant Capital will in the New Year launch new investment plans similar to those previously offered by ARC and has secured the services of experienced new staff to assist in the development of this business.
These arrangements ensure the continuing safe administration of existing investor funds and represents a significant new business opportunity for Merchant Capital.
Peter Redmond, Managing Director of Merchant Capital said "Merchant Capital is pleased to have assisted in securing the position of existing investors and looks forward to offering similar opportunities to the existing investor base and the wider investment community."
Martin Eberhardt, Chairman of Merchant House said, "We believe this represents a sizeable new business opportunity for the Group. It will develop alongside other recent Group initiatives within investment promotion and administration."
In addition to the new arrangements, Merchant House Group has purchased £70,000 of structured investments which will mature over the next five years.
Enquiries:
Merchant House Group Plc
James Holmes
Tel: 020 7332 2200
Shore Capital and Corporate Limited
Pascal Keane
Tel: 020 7408 4090
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