Rob Terry, the founder of Quindell, who sold out most of his stake in the controversial insurance claims processor in December, is backing the struggling broker that helped list the company on Aim.
Mr Terry has built up a 7.4 per cent stake in Daniel Stewart, according to a notice to the stock exchange. As nominated adviser to Quindell, the broker was paid to list the company, advise it and help it raise cash.
Quindell has been in turmoil since Gotham City Research, a short selling research group, published a dossier of allegations about its history, governance and business model. PwC has started an investigation into the company’s accounts.
In November, three Quindell directors, including Mr Terry, revealed a complex share dealing, which it was later revealed involved the sale of nearly £9m of their shares in the company with a commitment to repurchase them in two years.
Mr Terry was ousted as chairman of the claims processing business that month and sold 25m shares in the company — most of his stake — in December. At the time he retained a 2.99 per cent stake, which he would be able to sell further without making disclosures to the stock market.
The emergence of Mr Terry’s stake in Daniel Stewart comes just a day after Quindell agreed to sell its professional services arm to Australian law firm Slater & Gordon for about £700m.
City stockbroker Daniel Stewart is not without its own problems. In October, it admitted it lacked the regulatory capital required by the Financial Conduct Authority, the UK regulator. It missed the deadline for filing its accounts and suspended its Aim-quoted shares that month, and then had to relinquish its licence as “nominated adviser” to Aim companies late last year.
On March 6, Daniel Stewart finally published its annual report and its shares were restored to trading that day. However, it is still no longer a nomad.
Before it gave up its nomad licence, Daniel Stewart’s illustrious list of clients included the likes of strife-torn Rangers International Football Club and Naibu, a Chinese sports shoe maker, which last month was forced to admit it had lost all contact with the company’s chairman and senior executive.