St James’s Place has offered a £1.8m package of compensation to investors who lost money when former senior partner Peter Carron advised them to invest in his own businesses.
It says it will cover losses where it has evidence that a client believed Carron was acting as a representative of St James’s Place when he advised them to invest in his busin-esses, Comment Technologies, Evaluate Technologies and Primrose Associates – which are all now in liquidation.
Around 30 investors were affected and SJP says it is compensating around 20 investors. Most lost between £50,000 and £60,000 but one investor lost £400,000.
In cases where the group has found evidence that investors knew that Carron’s companies “had nothing to do with St James’s Place at all”, it will not offer compensation.
Where there is no evidence either way, SJP will offer to cover 50 per cent of the investor’s losses.
Group business development director David Lamb says: “We regret that a few investors have been badly let down by investments which were nothing to do with St James’s Place.
“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.”