On 23 February 2016, Samantha Bewick, David Standish and David Pike of KPMG LLP were appointed joint special administrators to Avalon Investment Services Limited, an investment administration company handling ISAs, Junior ISAs and Self Invested Personal Pensions (SIPPs).
On 25 February 2016, the joint special administrators completed a sale of the business to Embark Group Limited (‘Embark’), a specialist financial services group in the pensions and investment sector. All client accounts will transfer to its subsidiary Embark Investment Services Limited following the sale, and Embark will contact all clients over the coming days.
Avalon Investment Services is one of only a small number accredited in England to deal with Junior ISAs for children in local authority care, and employs 20 employees at its head office in Tetbury, Gloucestershire, all of whom will transfer to Embark. In total, the company administers approximately 48,000 customer accounts, of which a large majority relate to the administration of Junior ISAs for children in local authority care.
Commenting on the appointment, Samantha Bewick, director at KPMG and joint special administrator, said: "After a period spent in urgent discussions with various parties with a view to selling the business, we can confirm that we have now sold the business to Embark Services Limited, safeguarding all client funds.
“Customers are advised that they will receive further communication regarding their accounts from Embark Services Limited over the coming days.”
The appointment of the joint special administrators follows a claim made against the company’s former managing director relating to allegations of fraud. The former director is in Bankruptcy and the company was held jointly and severally liable in relation to the claim.
The impact of these significant liabilities and costs on the company’s balance sheet left the directors with no choice but to seek the appointment of special administrators.
The special administrators have set up a dedicated hotline and email address for affected parties on 0333 200 3405 and at email@example.com
Further information can also be found via the KPMG insolvency portal at http://insolvency-kpmg.co.uk/kpmg-insolvency-portal.html
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