Alexander David Securities, a London-based broker, is entering liquidation

The UK Ombudsman had upheld seven verdicts against the broker, and the broker had failed to pay the Ombudsman GBP 3,900 in fees. The majority of the remaining 32 cases against Alexander David Securities were either in the inquiry phase or had been referred to an Ombudsman for a ruling.

On the assumption that each claim has an average value of £41,858 based on past instances, the total claim value is projected to be roughly £1,339,470. In the past, the Ombudsman has upheld 85% of verdicts against Alexander David Securities.

The FCA has put restrictions on the corporate advice company, such that it may not dispose of any assets without the regulator's written permission. Since June 29, 2020, Alexander David Securities was not authorized to engage in regulated operations, keep client funds or assets, or issue or approve financial promotions for third parties.

According to the company's website, David Scott, a former director of corporate finance at Lewis Charles, served as the company's CEO and head of corporate finance.

The FCA stated that it was taking action so that money would be available to pay compensation due by ADSL, including a remedy awarded by the Financial Ombudsman Service but not yet paid, to customers who were given inappropriate pension advice.

The incorporation of Alexander David Securities occurred on November 30, 2006. The London-based business offered corporate finance advising services, such as initial public offerings, secondary fund raisings, mergers and acquisitions, and debt issues. Its clientele consisted of corporations and money managers. Since January 30, 2008, the firm had been authorized by the FCA to engage in regulated operations.

The FCA stated that it had been worried about the possibility of "a dissipation of Alexander David Securities' residual assets to avoid compensating complainants." The regulator's worries stemmed from the fact that ADSL's bank account balances had significantly reduced from £2,388,041 on 16 December 2021 to £433,353 on 26 April 2022, and that the broker had continued to fail to make full reparation payments to its consumers.

The FCA observed that Alexander David Securities had appointed four designated representatives in the past, but none of these firms were now operating under the company's regulatory umbrella. In 2018, the last of these firms, OS Wealth Management, left the agreement.

Joint liquidators (BDO) have been appointed to wind down Alexander David Securities for the benefit of its creditors; they will soon send a letter to all known creditors explaining what this entails and how to file a claim. As part of the company's winding down, the ombudsman will contact its clients to request permission to report the matter to the Financial Services Compensation Scheme.