The Financial Services Compensation scheme has declared City of London-based adviser firm Alexander David Securities Ltd (FRN 469150) in default.

The firm has 463 claims against it, with 51 rejected and 411 in progress, for investment and pension advice.

One claim has been upheld so far resulting in the default declaration. The decision means clients with valid claims can now seek up to £85,000 in compensation per claim

The firm was based in Queen Victoria Street in the City of London although the firm’s registered office was in Temple Street, Liverpool. The FCA cancelled the firm's authorisation in May 2023.

According to the FCA register, there were 74 regulated individuals who worked for the firm or have worked for the firm.

The company, now in liquidation, started in 2006 and provided investment broking advice and corporate advice. It had a number of appointed reps over several years.

There has been a recent rise in firms declared in default by the FSCS. Last week the FSCS declared that 12 regulated firms had been declared in default in February and March.

The failed firms included Pension Advice Specialists Limited of Sale; Aqua Financial Services Limited, formerly Aqua IFA Limited of Manchester; SIPP provider Hartley Pensions Limited of London and Frodsham Financial Planning Limited, formerly Tom Carroll Associates Financial Planning Limited, of Rochdale.

It's likely the total cost of the 12 claims could run into several millions of pounds in compensation.