Alexander David Securities Limited - Joint Liquidators Appointed

Client Money Claimants – notice of FSCS decision

Further to the first and final distribution of Client Money declared on 19 December 2022 and the Joint Liquidators’ subsequent report dated 16 January 2023, the Joint Liquidators have now received notification of the decision of the Financial Services Compensation Scheme (‘FSCS’) regarding whether or not cover will be available in respect of the shortfall suffered on claims submitted by Client Money Claimants.

The FSCS has determined that the Client Money shortfall does not qualify for cover under its compensation scheme. Further details of the FSCS’ decision can be found here:

https://www.fscs.org.uk/making-a-claim/failed-firms/alexander-david/

The shortfall suffered by each of the Client Money Claimants will rank as an unsecured claim in the liquidation estate; however, based on current information the Joint Liquidators do not consider that there will be sufficient realisations to allow a dividend to be paid to unsecured creditors.

 

On 30 September 2022, the Court approved the Joint Liquidators’ application for a Distribution Plan.  The Distribution Plan provides a mechanism which allows the Joint Liquidators to distribute Client Money held by the Company to those clients with valid Client Money Entitlements.

All known potential Client Money Claimants will receive a Distribution Notice which sets out in detail the information that needs to be provided to the Joint Liquidators in order to pursue a claim.  That information, in summary, includes:

• FOR ALL CLAIMANTS: identification documents and bank account information.
• FOR CLAIMANTS THAT HAVE NOT YET SUBMITTED A CLAIM: a completed Client Money Claim Form and supporting documentation.

The Joint Liquidators will be sending the Distribution Notices to all known potential Client Money Claimants during the week commencing 10 October 2022.

A Bar Date for claims (i.e. a date by which Client Money Claimants must make a claim) has been set for 15 November 2022. Please provide all requested documents to the Joint Liquidators prior to this date. The documents can be sent via email to ADSLclients@bdo.co.uk or by post to BDO LLP, 5 Temple Square, Temple Street, Liverpool, L2 5RH.

If you have any queries regarding your claim, please contact Catherine Werner on 0786 6919 077.

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: ADSLclients@bdo.co.uk

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: ADSLclients@bdo.co.uk

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  ADSLclients@bdo.co.uk.

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 ADSLclients@bdo.co.uk

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: BRCMTLondonandsoutheast@bdo.co.uk

FAQs

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 ADSLclients@bdo.co.uk.

 

Notice of client monies distribution

 

Distribution Plan (Sealed Order) - 30 September 2022

 

Notice of order approving the terms of the Distribution Plan