St James’s Place to pay £1.8m compensation to Carron investors

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 per cent of their losses.

The group has confirmed that the package is worth close to £1.8m and around 30 investors were affected in total.

David Lamb, 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 when making investments which were nothing to do with St. James’s Place.

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.

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There is one comment at the moment, we would love to hear your opinion too.

  1. Philip Westwood 16th August 2010 at 2:12 pm

    Good to SJP are taking their obligations seriously and aware of the fact that under law and FSA regulations they are liable for their clients losses.

    Its a shame other firms dont have the same integrity and professionalism in similar circumstances and insist that their clients spend time and money to sue them to obtain the redress they are legally owed…….

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