St James’s Place is to offer compensation to clients who lost out following the collapse of Primrose Associates.
The wealth manager is writing to the affected investors who lost over £4m of transferred client funds when the broker went bust, according to reports in the Mail on Sunday.
Primrose Associates was put into liquidation in June and KCBS insolvency practitioners John Kelmanson and Karyn Jones were brought in to try and recover some of the money that had been lost.
St James’s Place declined to comment on the compensation reports.
The Primrose collapse came after Evaluate Technologies, another company set up by Carron, went bust earlier this year owing an estimated £4m to private investors.
It is thought that 20 investors have lost money due to the Primrose collapse and other reports have claimed that Irish national Carron is being investigated by the City of London Police.
St James’s Place is majority owned by part-nationalised Lloyds Banking Group.
The wealth manager’s shares traded at depressed levels for several months until it issued a statement on July 28 to disspel speculation that Lloyds was planning to sell it.