On 1 July 2022 Alexander David Securities Limited (ADSL) entered creditors’ voluntary liquidation and Shane Cooks, Emma Sayers and Malcolm Cohen of BDO LLP were appointed as joint liquidators.
We set out below the steps ADSL clients can take if they are concerned about any investments arranged or promoted by ADSL or its appointed representatives, how clients can contact the liquidators, and steps that people can take to protect themselves against scams from any fraudsters who may be claiming to act on behalf of the firm or the joint liquidators.
ADSL is an FCA regulated firm which was authorised to conduct investment related activities. ADSL provided corporate finance advisory services which included initial public offerings, secondary fund raisings, mergers and acquisitions, and debt offerings. It also undertook some other unregulated activities.
Authorised firms like ADSL may provide regulated activities through appointed representatives. An appointed representative (AR) is a firm or person who carries on a regulated activity on behalf, and under the responsibility of, a firm authorised by the FCA (the principal). In appointing an AR, the principal assumes responsibility for the regulated activities the AR carries out. ADSL previously had four appointed representatives (ARs) which are listed below. These are no longer ARs of ADSL.
- Beer & Young Limited (06/11/2015 to 15/03/2017)
- OS Wealth Management Limited (25/05/2018 to 09/08/2018)
- St. Pauls Marketing Limited (12/10/2016 to 15/08/2017)
- Templeton Securities Limited (15/07/2013 to 19/08/2015)
ADSL had permission to hold and control client money until 29 June 2020 when the firm agreed voluntarily to requirements preventing it from doing so, following FCA intervention.
Following the application of voluntary requirements on 29 June 2020 and subsequent regulatory action, on 29 April 2022 we imposed a number of requirements on ADSL which can be seen on the firm’s entry on the Financial Services Register. The reasons for these requirements can be found in the First Supervisory Notice.
The joint liquidators have been appointed to wind up ADSL for the benefit of its creditors and will be writing to all known creditors shortly to explain what this means and how to make a claim. You can find the latest developments on their website.
If you believe you have a claim against the firm and do not hear from the joint liquidators by 8 July 2022 then please contact them using the following contact details:
Catherine Werner
Firm Name: BDO LLP
Address: 55 Baker Street London W1U 7EU
Website: www.bdo.co.uk
Email: [email protected]
Telephone: +44(0) 207 034 5884
Does ADSL hold client money under the FCA’s Client Money Rules and what will happen to any client money held by ADSL?
Whilst ADSL was originally authorised to hold and control client money, from 29 June 2020 the firm was subject to a voluntary requirement that it would not hold client money and/or assets. This can be seen on the firm’s entry on the Financial Services Register. However, we believe that the firm may have continued to hold and control some client money.
Under the FCA’s Client Money Rules, firms are required to segregate client money from their own money so that, in the event of insolvency, client money can be returned. This would not apply to client money held in respect of unregulated activities.
The joint liquidators will assess whether the firm has been holding client money, to confirm the current position. Following that assessment, the joint liquidators will work to return client money to clients in accordance with applicable law.
Costs associated with distributing any client money back to clients, including the joint liquidators’ fees, will be deducted from that client money. These costs may be covered by the FSCS (see below).
What is happening to my investment?
Clients may have had investments arranged or promoted by ADSL in their own name or held by another investment firm. You should contact the company you invested in or the investment firm through which your investment is held for further information regarding your investment.
If you have further queries regarding your investment, please contact the joint liquidators using the contact details above.
How can I make a complaint against ADSL?
The Financial Services Compensation Scheme (FSCS) protects consumers when authorised firms fail. It is the compensation scheme for clients of UK authorised financial services firms.
If you are a client of ADSL, you should visit FSCS to find more details about how to claim for any losses incurred. The FSCS will investigate whether there are any claims that meet the qualifying conditions for compensation.
The FSCS has eligibility criteria both in respect of the people and businesses who are covered. For eligible clients, the FSCS will cover client money shortfalls, including the costs associated with distributing money back to clients, and any other eligible claims against the firm, up to a total of £85,000.
The joint liquidators will work with the FSCS to determine the position and will provide further updates.
What should I do if I have an existing complaint against ADSL?
If you have already referred a complaint to the Financial Ombudsman Service, you don’t need to take any action. As the firm is in liquidation the ombudsman service will contact you in due course to ask for permission to refer the case to the Financial Services Compensation Scheme (FSCS).
Why was ADSL placed into liquidation?
Following the issuing of the First Supervisory Notice to the firm on 29 April 2022, we remained concerned that the firm was not able to meet its debts as they fell due. The director and shareholder of ADSL subsequently undertook to place the firm into creditors’ voluntary liquidation and appointed the joint liquidators.
Following the commencement of the liquidation the director’s powers have ceased and the joint liquidators have taken control of ADSL.
Do I have to pay to get my money back or to make claim?
Costs associated with distributing client money back to clients, including the joint liquidator’s fees will be deducted from the client money. Please see above regarding FSCS coverage for these costs for eligible clients.
Clients do not have to pay separately to make claims. Please see our section below on protecting yourself from scams.
Do I need to use a third party to get my money back or to make a claim?
You should proceed with caution if you are approached by a claims management company (CMC). For the vast majority of clients, there is no benefit in involving a third party in making a claim or reclaiming your client money. If you use a CMC to assist, the CMC is likely to seek a fee which may reduce what you get back.
If you are considering using a CMC, we suggest you first discuss this with the joint liquidators using the contact details provided on their website.
Is the FCA overseeing the liquidation?
ADSL is still authorised by the FCA and remains subject to supervisory oversight and the FCA’s rules. The joint liquidators need to comply with all insolvency law and are licensed insolvency practitioners licenced by the Institute of Chartered Accountants in England & Wales (ICAEW). We are liaising closely with the joint liquidators.
Protecting yourself from scams
Fraudsters sometimes claim to be from legitimate firms authorised by us, or (in the case of liquidation) their appointed liquidator. Be wary of fraudsters pretending to be ADSL, BDO LLP or the joint liquidators and asking you to pay money to get your money back. If you are cold called by someone claiming to be from ADSL, BDO LLP or the joint liquidators, please end the call and contact the joint liquidators using the details provided above.
Find out more information on protecting yourself from scams and our page on recovery room scams.
Source: FCA
