The winding-up of the failed IFA Nexus Independent Financial Advisers (FRN 584769) looks set to take longer than expected, with unsecured creditor claims still waiting to be met.

Administrators said in an update this week that, “we cannot yet determine when we expect to be able to complete the tasks within the administration.”

The administration process was extended in January for a further year to give the administrators more time.

Carl Faulds and Nicola Layland of Leonard Curtis were appointed joint administrators of Fareham, Hants-based Nexus by the High Court on 26 January 2023.

They arranged a deal to sell off the firm to Vintage Wealth Management but it was hit by payment wrangles with the initially agreed £500,000 amount cut to only £141,331, according to reports in October.

The latest update reveals the sale price was agreed at £270,833 but Vantage ended up paying just £183,080 after some legal wrangling.

Since then administrators have paid out £15,200 to preferential creditors, to meet employees’ wage arrears. Some £1,362 has also been paid into the company’s pension scheme provider.

Of the remaining funds the administrators said that their remuneration and costs would total £168,743. They said their original estimate that expenses and disbursements would cost between £62,762-£72,761 had climbed to £125,000 following additional work required by solicitors during the process.

The administrators said they do not have the power to distribute any remaining funds to unsecured creditors. They said: “If funds become available then this will be dealt with by the subsequently appointed liquidators.”

The FCA stepped in at Nexus at the start of 2023 after concerns about client money irregularities at the firm totalling £2m. The FCA said it intervened because of “very serious concerns.”

The watchdog said it believed that the firm's sole director Kerry Nelson may have deducted sums from clients without authorisation or without FCA knowledge.

In its Supervisory Notice, the FCA said it appeared that the firms’ director may have taken a total of £2.072m in unauthorised and/or inappropriate withdrawals from clients of the firms. It said the conduct appeared to relate to multiple clients and to have spanned at least the period from September 2021 to December 2022.

The FCA placed restrictions on the use of the company’s funds and assets, requiring the administrators to gain written consent from the regulator each time a payment is required either to creditors or as an expense of the administration.

New owner, Vintage Wealth Management Limited was established in 2004 after a merger between two independent financial advisory firms, Aztec Financial Limited and Bond & Stein plc.

Nexus Independent Financial Advisers was incorporated on 27 September 2007 (FRN 584769) and was authorised by the FCA to perform regulated activities from 15 November 2012.

Nexus Investment Managers Limited (FRN 610663) was incorporated on 12 August 2013 and was authorised by the authority to perform regulated activities from 14 April 2014. It is a discretionary fund manager.