The Financial Services Compensation Scheme has declared London-based Alexander David Securities Limited in default.
The lifeboat scheme told FT Adviser it has received 463 claims against the firm with one upheld, 51 rejected and 411 still in progress.
It also said the claims were in regard to investment and pension advice and confirmed they were not BSPS related.
According to the FCA register the firm has not been authorised since April 2023.
In July 2022, the FSCS became open to claims against the firm after it entered into liquidation following restrictions placed on it in May 2022 by the Financial Conduct Authority to prevent it from disposing of assets.
After stopping the firm from disposing of assets without its approval due to unpaid compensation, the FCA said it “remained concerned” that the firm was not able to meet its debts as they fell due.
Alexander David Securities Limited provided regulated activities through a number of appointed representatives, including Beer & Young, OS Wealth Management, St. Pauls Marketing Limited and Templeton Securities Limited.
The last two provided investment advice, and recommended clients transfer their pensions into self-invested personal pensions and to invest those funds into mini-bonds, the regulator said.
At the time the firm entered into liquidation, the Financial Ombudsman Service said it had upheld complaints that the firm's advice was unsuitable and transfers were not in the customers’ best interests.
alina.khan@ft.com
