St James's Place (SJP) is close to completing a compensation package for some 30 investors who collectively lost millions of pounds in investments made by a former senior partner.
The group said in August it would cover any losses where it found evidence clients believed Peter Carron was acting on behalf of SJP when he advised them to invest in Comment Technologies, Evaluate Technologies and Primrose Associates.
However, the wealth manager says it has come across a number of cases where investors were "fully aware" their investments were solely with Carron. They have been denied compensation.
Elsewhere, the group has paid full compensation to investors where it found "sufficient evidence" they believed they were with SJP, and made ex-gratia payments of about 50% of investors' losses where it could not find substantial evidence either way.
In August, the FSA said it had received information that Carron "misappropriated client's investments into his ‘special project account'". Primrose Associates is in administration.
Meanwhile, City of London police are also investigating the matter. A 41-year-old man arrested in July on suspicion of fraud was re-bailed yesterday.
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