Clients in limbo as stockbroker Wills & Co holds survival talks

The future of Wills & Co, one of the oldest stockbroking houses in the City, was in serious doubt today as the firm holds vital talks with administrators and regulators.

While the firm insists it is solvent, it has ceased trading and is in daily talks with the Financial Services Authority.

About 19,000 clients of Wills & Co are in limbo, though these accounts may be transferred to another firm. Pritchard Stockbrokers is the name in the frame.

Sales director Darren Lansdown declined to comment today while talks with various parties continue.

"There are still a lot of decisions to be made," he said. "We are co-operating with the regulators and working on what is in the best interests of our clients."

Administrators have not yet been officially appointed, although one firm has been advising Wills on its situation.

The company was founded in 1883 by Grahame Wills in Bristol as the financial services arm of the Wills Tobacco empire, which included the famous Player's, Capstan Full Strength and Gold Flake brands. It is based in the City where it specialises in small cap stocks and is a member of the London Stock Exchange.

No stranger to controversy, Wills was fined £49,000 by the FSA in October 2007 for failing to ensure its customers understood the risks involved with penny stocks and "for being unclear, unfair and misleading when advising on the shares".

Some clients remain unhappy with the service Wills has provided — more than 100 have lodged complaints with the Financial Ombudsman Service.

Annual accounts filed at Companies House show the firm running into trouble. In 2006 Wills recorded a profit of £3.3 million on turnover of £11.1 million. By 2008 this had become a loss of £4.1 million on turnover of just £6 million.