St James's Place (SJP) has offered £2 million compensation to some of the clients who lost money through adviser Peter Carron, according to The Mail on Sunday.
Upmarket sales force SJP has offered payments to around 15 investors who invested money with Carron, an SJP partner and owner of liquidated IFA firm Primrose Associates, according to The Mail. It said that Carron had taken money from SJP clients and used it to back personal ventures that collapsed.
Primrose Associates was placed into liquidation on 21 June and John Kelmanson, joint liquidator of the company, has said that £4 million of client money was passed from Primrose Associates to another business, Evaluate Technologies, which has also gone into liquidation. Both Primrose and Evaluate are owned by Carron.
Around half of the investors are thought to have received offers that would fully compensate them for their losses, while the rest are understood to have been offered payments that would cover half their losses. Some other investors will not be offered anything, according to The Mail.
SJP told the paper that in some cases it was not clear that Carron's SJP links were a factor in clients investing.
'We regret that a few investors have been badly let down by one individual who misled them into making investments that were nothing to do with St James's Place,' it told The Mail.
Last week Citywire revealed that City of London Police had arrested a 41-year-old man believed to be Carron as part of its investigation into Primrose.
A statement from the police did not name Carron but said a 41-year-old man was released on police bail without charge after an arrest on suspicion of fraud.
City of London Police has said it is continuing to investigate how Primrose Associates and SJP client money was invested as part of its probe into Primrose.