St James’s Place has offered a £1.8m package of compensation to investors who lost money through investments by former partner Peter Carron in his own businesses.
The group says in a statement it will cover any losses where it has evidence that a client believed Carron was acting as an appointed representative of St James’s Place when he advised them to invest in his businesses Comment Technologies, Evaluate Technologies and Primrose Associates.
But in cases where the group has found evidence that investors were aware that Carron’s companies “had nothing to do with St James’s Place at all” it will offer no compensation.
In cases where there is no evidence the group has offered to cover 50% of their losses.
“We regret that in this case, a few investors have been badly let down by one individual”
The group has confirmed that the package is worth close to £1.8m and about 30 investors were affected in total.
David Lamb, a group business development director at St James’s Place, says: “We insist on the highest standards of integrity and quality of advice for our Partners and our exceptional retention rate of clients is proof of that.
“We regret that in this case, a few investors have been badly let down by one individual who misled them into making investments which were nothing to do with St James’s Place.” (article continues below)
A 41-year-old man was arrested and bailed on July 15 by the City of London Police on suspicion of fraud by false representation and abusing a position of trust in relation to the collapse of Primrose Associates.
The wealth management company is majority-owned by part-nationalised Lloyds Banking Group and its shares traded at depressed levels for several months until it issued a statement on July 28 to dispel speculation that Lloyds was planning to sell it.
Note: This story was updated at 12:01.