0808 2 818 717

Pacific Continental Securities

Declared in Default January 2009 – Max Compensation £48k

Pacific Continental Securities (UK) Ltd (PCS) was no stranger to controversy. Having courted negative publicity and bad press since 2004, PCS soon acquired the unwanted accolade of being dubbed ‘Britain’s riskiest stockbroker.’

In May 2007, the FSA became concerned about PCS’ ability to remain adequately capitalised as a result of the level of customer complaints that were referred to the Financial Services Ombudsman for which PCS was advised by its accountants to make a £2,000,000 provision.

On 15 June 2007, PCS voluntarily varied its permissions with the effect that it would not subsequently undertake any regulated activity except to the extent necessary to close and settle existing customer positions. On 20 June 2007, PCS ceased trading and went into administration.

In March 2008, PCS moved from being in administration to being in Creditor’s Voluntary Liquidation.

In December 2008 the FSA issued a ‘Public Censure’ against PCS. It found that “The serious nature of the (rule) breaches identified ... would have led the FSA to impose a financial penalty of £2,000,000 were it not for the fact that the firm went into administration and is now in liquidation.”

On 19 January 2009, the Financial Services Compensation Scheme (FSCS) declared PCS “in default”. This means that PCS is unable or unlikely to be able to meet its liabilities and as the UK statutory fund of last resort; the FSCS can step into the shoes of PCS and redress eligible claimants (subject to its limits). This has opened the doors for claims for compensation for which the authorities are budgeting for a cost of £100,000,000, however insiders believe claims could hit £300,000,000. Hallbrook Partners believe even this figure could be surpassed.

On 28 January the FSA fined the former chief executive of PCS, Steven Griggs £80,000 and banned him from holding any ‘significant influence’ function with a regulated firm. Charles Weston, the former finance director of PCS was fined £95,000 and banned from carrying out any regulated activities.

It was also deemed that Mr Griggs and Mr Weston misled the FSA about the true nature of their relationship with an individual linked to share fraud scams (also known as boiler room fraud).

Important information for ‘nominee account’ clients

Due to inadequate record keeping by PCS, the administrators could not properly reconcile the nominee accounts. Therefore if you do not hold share certificates your investments will almost certainly be lost. With this in mind, Hallbrook Partners encourages every PCS client to pursue a claim for compensation on at least the basis of a ‘return of property.’ FSCS will return the value of your investments as of the 19th January 2009 when PCS was declared “in default”. (Subject to its limits).

It is likely that the value of your investments on 19 January 2009 is substantially less than the original investment you made. Hallbrook Partners can help to establish if you were a victim of mis-selling in which case you can claim back the entirety of your losses subject to the FSCS limits. Please contact us for more details.

Call now 0808 2 818 717

Request a FREE Call back
Complete the form below and one of our expert advisors will call you back.

Customer Testimonials

We are proud to have already helped thousands of clients recover tens of millions of pounds in compensation.

Claim Process

At Hallbrook we ensure the process is simple and hassle free, making a claim with us couldn’t be simpler.

The Parlimentary Review

The Parliamentary Review is a series of fiercely independent publications. It reviews the latest events in parliament from a non-partisan perspective, but it is wholly independent of government. Those companies which feature within the publication are not in any way endorsed by the Government, any government agency or regulator. For more information please visit the Parliamentary Review website

Hallbrook feature in the 2017 edition of The Parlimentary Review which is available to view here.