The Financial Services Compensation Scheme is working with the administrators of Avalon Investment Services.
The Sipp administrator went into administration on Monday (22 February) and the FSCS has said it is working to understand what the firm’s insolvency might mean for its customers.
In a statement the FSCS said: “The FSCS is aware of the situation with Avalon Investment Services Limited, and is working with the firm’s special administrators to understand what the insolvency of Avalon might mean for its customers.”
According to administrator KPMG there are a number of businesses interested in buying Avalon’s business which they are in negotiations with.
A statement by KPMG said: “Avalon applied for a special administration order on 22 February 2016 following a court judgment to pay a sum which would have reduced its regulatory capital below the minimum required by the FCA.
“The effect of this court case was to make Avalon’s balance sheet insolvent. The joint special administrators are in negotiations with several parties and hope to conclude a sale of the business within a very few days.”
The FSCS protects private individuals and small businesses if an authorised firm becomes insolvent and cannot return money or investments to its customers.
For eligible investment claims, the FSCS can pay up to £50,000 in compensation per person.
The FSCS said clients of Avalon should contact the special administrators on 0333 2003405 or email aisclaims@kpmg.co.uk if they have any questions.
