Alderley Asset Management hit by mis-selling claims
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FINANCIAL services firm Alderley Asset Management went into administration earlier in the year because it was facing a number of mis-selling claims.
According to a creditors’ report, administrators from Leonard Curtis were appointed in March after some of them claims were expected to leave the firm with an exceptional loss of £250,000.
There were 18 allegations of miss-selling against the firm, said the report, with the majority dating back to before 2011 when the company was acquired by Robert and Pamela Angel.
Not all of them were covered by professional indemnity insurance and several claims were upheld by the Financial Ombudsman. Others are still being dealt with.
The company, which had six staff, was trading profitably and made £52,000 on sales of £1m in the year to the end of December.
It was sold back to the Angels through TPD Wealth Management in a pre-pack deal for £155,000. This will be used to repay the firm’s secured creditor, Lloyds Bank.
Leonard Curtis said any upheld claims against the company will be referred to the indemnity insurers. If they do not agree to pay the claimants will be ranked as unsecured creditors. Including claims worth £250,000, nearly £300,000 is owed to unsecured creditors.