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May 3, 2024

FSCS declares Alexander David Securities Ltd in default

The Financial Services Compensation Scheme (FSCS) has declared Alexander David Securities Ltd in default.

The FSCS announced on April 30, that the firm, which it had been investigating since July 2022, had failed.

It’s reported that the FSCS has received 463 claims against Alexander David Securities Ltd that relate to investment and pension advice.

At present, the FSCS has upheld one claim and rejected 51 claims.

FSCS Claims against Alexander David Securities Ltd

In January 2024 the FSCS confirmed it had completed its investigation into Alexander David Securities Ltd in relation to the activities of St Pauls Marketing. An Appointed representative of the firm.

The FSCS said its investigation centred on customers who had been introduced by St Pauls to JLG Group Plc, formerly known as Just Loans Plc.

These customers then switched their pension arrangements into a Self-Invested Personal Pension (SIPP) with Gaudi, in order to invest.

The FSCS confirmed it can consider claims against ADSL for the activities of St Pauls from 12 October 2015 to 15 August 2017 (when St Pauls ceased to be regulated).

 

What happened with Alexander David Securities Ltd

Between June 2020 and April 2022, the Financial Conduct Authority (FCA) placed several requirements upon the firm.

The first in June 2020 was a voluntary requirement to cease all regulated activity and withdraw promotional activity.

Then in April 2022 the regulator issued a First Supervisory Notice and prevented the firm from disposing of assets without its approval.

This notice said FCA had “identified serious concerns relating to ADSL in that its conduct appears to demonstrate that it poses a significant risk of harm to consumers”

Alexander David Securities Ltd entered creditors’ voluntary liquidation in July 2022 and joint liquidators were appointed.

St Pauls Marketing and City One Securities

St Pauls Marketing was also an Appointed Representative of another FCA authorised firm – City One Securities Ltd.

City One Securities was declared in default in 2020 and in February this year the FSCS announced it had completed its investigation into the firm.

This was also in relation to customers who were introduced by St Pauls Marketing to JLG Group and/or to Hydrology plc (formerly Water Bonds plc).

Customers then switched their pension arrangements into a Gaudi SIPP in order to invest.

The FSCS says it can consider claims against City One Securities for the actions of St Pauls Marketing up until 11 October 2015, when it stopped being the principal firm.

Claims in relation to St Pauls Marketing Ltd, carrying out the same activities from 12th October 2015, should be made against Alexander David Securities Ltd.

Important Information!

You are not required to use our services to pursue your claim. You can also seek further advice or shop around subject to any time limits within which a claim must be made.

It is possible for you to present the claim for free, either to the firm or person against whom you wish to complain or to the statutory ombudsman (Financial Ombudsman Service or Pension Ombudsman Service) or the Financial Services Compensation Scheme, whichever is applicable to your claim.