FCA confirms entry of Alexander David Securities Limited into liquidation
The UK Financial Conduct Authority (FCA) confirms that on 1 July 2022 Alexander David Securities Limited (ADSL) entered creditors’ voluntary liquidation. Shane Cooks, Emma Sayers and Malcolm Cohen of BDO LLP were appointed as 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). 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 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.
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
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, the FCA believes 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.
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.