St James’s Place is looking to compensate at least some investors who have lost up to £5m following the collapse of Primrose Associates, Money Marketing understands.
Around 20 investors claim to have lost out after investing in the mortgage brokerage which was run by SJP partner Peter Carron.
Primrose Associates was put into liquidation in June and KCBS insolvency practitioners John Kelmanson and Karyn Jones were brought in to try to recover some of the money that had been lost.
The collapse of the mortgage brokerage came after Evaluate Technologies, which was another company set up by Carron, went bust earlier this year owing an estimated £4m to private investors.
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.