Penson to close UK arm
21 December 2011 London
Image: Shutterstock
Penson Worldwide has announced plans to close its UK operation over the next few months, and to sell certain of the operation’s assets to third parties.
Exiting the UK local clearing market was one of the Company’s previously announced strategic objectives to reduce costs and debt, and improve profitability. Penson Financial Services Ltd (PFSL) of London is currently running at an annual loss of $6-$7
PFSL has approximately 25 correspondent customers, 60 employees, and $8 million in net revenues. It was accounted for as a discontinued operation in Penson’s results
starting in the third quarter of 2011.
Penson said that after lengthy negotiations with several leading financial organisations, it was unlikely a sale agreement of PFSL as an operating entity would have been reached in a timely manner.
Exiting the UK local clearing market was one of the Company’s previously announced strategic objectives to reduce costs and debt, and improve profitability. Penson Financial Services Ltd (PFSL) of London is currently running at an annual loss of $6-$7
PFSL has approximately 25 correspondent customers, 60 employees, and $8 million in net revenues. It was accounted for as a discontinued operation in Penson’s results
starting in the third quarter of 2011.
Penson said that after lengthy negotiations with several leading financial organisations, it was unlikely a sale agreement of PFSL as an operating entity would have been reached in a timely manner.
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