PETER R SHAKESHAFT, CHIEF EXECUTIVE OFFICER OF WILLS & CO FINANCIAL GROUP PLC 22nd February 2010

Peter R Shakeshaft, CEO of Wills & Co Financial Group Plc, (parent company to Wills & Co Stockbrokers Limited) commented; “You will have noted the press release issued by the Financial Services Authority (“FSA”) earlier this week without the normal prior notification to the firm from the FSA. Wills & Co Financial Group Plc does not agree with the findings of the FSA.

After its subsidiary company, Wills & Co Stockbrokers Ltd (“Wills & Co”), spent circa £1.5 million with leading city solicitors, an eminent firm of barristers and one of the top four consultants the firm has had to bow to the pressure tactics of the FSA.

The FSA reviewed a sample of 19 telephone calls and the same information on the same clients was subsequently appraised by the top four consultancy firm who stated in their report, provided to the FSA, ‘that there was insufficient evidence to conclude that the sales made were unsuitable’. They also expressed the view that ‘the client understood the high risk nature of penny shares’.

Whilst advising the Firm, the consultant introduced ‘a new and particularly stringent compliance regime’ and concluded ‘Based on our assessment to date, together with the procedural enhancements we have implemented, Wills & Co has demonstrated that it can provide compliant advice. We are satisfied that Wills & Co does not present a risk to consumers going forward’.”

Peter Shakeshaft commented further “In regard to the 19 calls sampled out of the 19,000 clients, and the thousands of trades that Wills & Co have undertaken, that taken into context, those trades were not mis-sold. With the FSA’s opposing view in mind we invite every client of Wills & Co to complain to the Financial Services Compensation Scheme and let them determine whether clients were mis-sold. I suspect not”.

“You will notice, that the Banks, which led us into this credit crisis, have been ‘too big to fail’. It is a shame that the FSA have not adopted a practice of fairness across all sectors! If the FSA insist on an interpretation of their rules and guidelines that stocks and shares must be advised upon in the same way an IFA would advise on an insurance product on a case by case basis I genuinely fear for the very existence of all stockbrokers in this country. Where a stockbroker has a working relationship with a client (note that 1 of the 19 calls was the 42nd trade out of 140 with a particular client), the FSA’s policy that every share sale now has to be sold on a case by case basis will prejudice the client negatively because of the time sensitive nature of recommendations. In my view something has to be done quickly. If the SFA were still in existence today fully looking after stockbrokers it is my belief that Wills & Co would not be in the position it has found itself in and 100 people would have kept their jobs.”

For further details please contact Peter R Shakeshaft on 0203 384 2266.


Some points to consider:-

Wills & Co has 19,000 clients.

In 2009 Wills & Co transacted 19,067 trades of which 13,538 were main market.

In 2008 Wills & Co transacted 22,565 trades of which 14,275 were main market.

The FSA reviewed a sample of 19 telephone calls.

Contrary to the FSA’s press release Wills & Co instigated the appointment of the Top Four consultant.