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Case update:

Alexander David Securities Limited - Joint Liquidators Appointed

04 July 2022

With effect from 1 July 2022, Alexander David Securities Limited (the ‘Company’ or ‘ADSL’) has been placed into Creditors’ Voluntary Liquidation (‘CVL’).  Shane Crooks, Malcolm Cohen and Emma Sayers, licensed insolvency practitioners from BDO LLP, have been appointed as Joint Liquidators (the ‘Liquidators’). 

The Liquidators are now responsible for the affairs of the Company, and for managing the orderly winding-up of the Company in the best interests of its creditors and other stakeholders. Further information in respect of the Liquidation and what this means for creditors and customers of the Company, together with some FAQs, is provided below. 

The information on this website will be periodically updated as the Liquidation progresses.

The Liquidators will be writing to all creditors and customers of the Company.  If you have any queries in respect of the Liquidation or your claims against the Company, please contact: [email protected]

The Company remains regulated by the Financial Conduct Authority (‘FCA’), and the Liquidators are working closely with the FCA to ensure an orderly wind-down of the business and that customers are treated fairly.

The Liquidators act as agents of the Company and without personal liability. 

Money held by ADSL on behalf of clients or other third parties

We understand that the Company has been holding funds on behalf of certain clients, investors or other third parties.  The Liquidators will take immediate steps to determine whether these funds are or should have been held under the FCA’s client money rules, confirm the ownership of these funds and reconcile the position with a view to returning the funds in accordance with applicable law.  Please note that the costs associated with reconciling and returning any client money would be deducted from that client money, although FSCS may cover these costs subject to eligibility (see below).

The Liquidators will be writing to affected parties providing further details in respect of this process.  If you believe the Company holds funds on your behalf and have any queries in the meantime, you should contact: [email protected]

Existing customers of ADSL

Clients may have 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 Liquidators at  [email protected].

Customers with existing complaints against the Financial Ombudsman Service (‘FOS’)

The Liquidators are aware that certain customers may have made complaints to the FOS in respect of advice provided by ADSL or its Appointed Representatives.

 If you have already referred a complaint to the FOS, you don’t need to take any further action at this stage. 

The Liquidators will be contacting FOS to determine what further action needs to be taken in respect of these claims.  Further updates will be provided in due course.

To contact the FOS, please visit: https://www.financial-ombudsman.org.uk/contact-us

If you have further queries regarding your FOS complaint, please contact the Liquidators at  [email protected]

Financial Services Compensation Scheme

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. 

The FSCS has eligibility criteria both in respect of the people and businesses who are covered.  For eligible clients, the FSCS may cover client money shortfalls (including the costs associated with distributing money back to clients), and any other eligible claims against the firm (such as upheld FOS complaints), up to a total of £85,000.

The Liquidators will be liaising with the FSCS to determine the position as regards the Company and what cover may be available.  Further updates will be provided in due course.

Trade creditors/ suppliers

If you previously provided services to ADSL and consider yourself a creditor of the Company, you may wish to submit a claim in the liquidation.  To obtain the required claim form, you can send an email to the Liquidators’ team at: [email protected]

FAQs

A Liquidation is a legal process which is used when a company is, or is likely to become, unable to pay its debts (i.e.  the company is insolvent).  Control of the company is passed to an appointed ‘liquidator’ who has to be a licenced insolvency practitioner.

The liquidators(s) must act in the best interests of the company’s creditors.  Creditors are all those people or businesses that are owed any money by the company.  Creditors will be repaid in a strict order of priority as defined by the law but, as the company is insolvent, not all creditors will be repaid. 

A Liquidation places a ‘moratorium’ around the company.  This means that any legal action against the company is automatically stopped.  This includes, for example, legal action by people who are owed money by the company.

In June 2020, following discussions with the FCA the Company agreed to a Voluntary Requirement which prevented it from carrying out certain regulated activities.  With effect from 29 April 2022, the FCA issued a First Supervisory Notice (‘FSN’), which imposed further requirements on the Company.  The FSN can be accessed here.

Following the issue of the FSN, the Company’s director resolved that in the circumstances the Company was unable to continue trading, and that it should be placed into creditors’ voluntary liquidation, with liquidators appointed to wind-down the business and affairs of the Company.

Costs associated with distributing client money back to clients, including the Liquidators’ fees, will be deducted from the client money balances.  There is no separate cost to clients or creditors wishing to make claims, and the Liquidators will not be asking for any payments from affected creditors and clients.

Whilst any customer is entitled to obtain legal advice, there is no need for you to incur the cost of doing so.  There are free legal advice services available, such as through Citizens Advice.  More information can be found here: www.adviceguide.org.uk

ADSL is still authorised by the FCA and remains subject to supervisory oversight and the FCA’s rules.  The Liquidators are liaising closely with the FCA.

Scams

Fraudsters can sometimes take advantage of a company going into liquidation.  Neither ADSL, BDO LLP, nor the Joint Liquidators, will ever ask you for your bank details or other personal information over the phone.  As such, you should treat any unexpected cold calls or conversations of this nature with suspicion.

If you have any doubts or concerns regarding any communications received, please contact the Liquidators at  [email protected].