Alexander David Securities Ltd (ADSL), once a revered London broker known for its investment acumen, now finds itself amidst a growing concerns, having entered creditors' voluntary liquidation last year. The story that unfolds involves potential mis-sold claims, unmet obligations, and multiple financial red flags.
If these names sound familiar, you may be affected. But don’t fret; CP Financial Claims is here to guide you through these turbulent times.
The Downfall of ADSL and Its Associated Entities
Founded on 30th November 2006, Alexander David Securities Ltd thrived in the heart of London, providing corporate finance advisory services that ranged from initial public offerings and mergers to secondary fund raisings and debt offerings. Their clientele included corporate entities and fund managers. However, their authorisation to perform regulated activities since 30 January 2008 didn't shield them from financial turmoil.
The storm clouds began gathering when Just Loans Group products, which Alexander David Securities recommended investment in, including 'Just Cash Flow,' spiralled into trouble. Just Loans Group PLC, which offered retail bond investments to customers in the UK, eventually failed, with Geoff Rowley and Paul Allen of FRP being appointed as its joint administrators on 15 June 2022, marking the group's foray into insolvency.
Then came the downfall of ADSL. On 1 July 2022, the company stepped into creditors' voluntary liquidation, with Shane Crooks, Emma Sayers, and Malcolm Cohen of BDO LLP appointed as joint liquidators. The FCA, observing the situation, released an update on 14 October 2022, highlighting the High Court's approval for the joint liquidators' plan to distribute ADSL's client money. Notices were sent to potential claimants during the week commencing 10 October 2022.
Interestingly, ADSL previously had ties with several Appointed Representatives (AR’s) – firms or individuals that conduct regulated activity under a principal firm's responsibility. Their list included Beer & Young Limited, OS Wealth Management Limited, St. Pauls Marketing Limited, and Templeton Securities Limited. These AR’s have since severed their affiliations with ADSL.
Notably, the FCA intervened and restricted ADSL from holding client money from 29 June 2020. This came amidst concerns of a significant reduction in ADSL's bank balances and their continued refusal to make full redress payments to customers.
Furthermore, the UK Ombudsman's observation throws light on the gravity of the situation. With seven decisions upheld against ADSL and 32 open cases, the total claim value stands at an estimated £1,339,470. The Ombudsman has a history of upholding 85% of decisions against ADSL, adding to the looming crisis.
The Link Between St. Pauls Marketing, City One Securities, and ADSL
St Pauls Marketing, once an Appointed Representative for both ADSL and City One Securities, plays a crucial role in this story. Principal firms like these are typically held liable for advice given by Appointed Representatives. While City One Securities entered liquidation in January 2020, ADSL's liquidation began on 1 July 2022. Both firms have since been declared in default by the Financial Services Compensation Scheme (FSCS), implying that claims against them are now being processed by the FSCS.
For those who received investment advice regarding Just Loans Group from St Pauls Marketing, potential claims can be filed against ADSL or City One Securities, depending on the time frame of the advice given.
CP Financial Claims to the Rescue
As more information continues to emerge about the ADSL failures, if you recognise any of the aforementioned names or think you may have been affected, CP Financial Claims stands ready to assist.
Our dedicated team is experienced in handling such claims and ensuring that our clients get the compensation they deserve. We understand the nuances of financial compensations and are here to guide you every step of the way.
In light of these revelations, it's essential to act swiftly. Our priority is to ensure that justice is served and you are adequately compensated for any potential losses.
The Next Step
If you believe you've been affected by Alexander David Securities Limited, or have investments connected to Just Loans Group, don't remain silent. Reach out to CP Financial Claims via the form below, for a free, no-obligation chat.