Astaire black hole investigated by FSA
UK stockbroker Astaire is today under investigation after informing the Financial Services Authority (FSA) of a potential £1.4 million black hole in its balance sheet. It is believed that issues at the company's Rowan Darlington operation left the company unable to reconcile its report and accounts and at the very least the company is likely to incur a significant fine from the FSA.
It is likely that the discovery of a potential £1.4 million black hole in the company's balance sheet will effectively end (or at least delay) the company's planned £3.6 million takeover of fellow stockbroker Hoodless Brennan, which itself has been under investigation by the FSA. This is just the latest in a long line of controversial announcements regarding Astaire which was previously known as Blue Oar Securities prior to being taken over by Evolve Capital towards the end of 2008.
It was intended that the company would be used as a vehicle to consolidate the UK stockbroking industry, where many smaller operators may benefit from the backing of a larger group. We will keep you up-to-date with the progress of the FSA investigation and any action taken by the regulator in what is becoming a more complicated and more controversial issue day by day.
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