Prompted by the Financial Conduct Authority’s (FCA) scrutiny of ongoing advice provision in 2024, the review identified cases where the firm may not have delivered sufficient services to all clients. This provision reflects Ascot Lloyd’s commitment to ensuring fair outcomes in a stringent regulatory landscape.
A spokesperson for Ascot Lloyd described the allocation as a prudent step, stating, “We operate in a highly regulated environment and are fully aligned with the FCA’s aim of securing optimal client outcomes. Our comprehensive review of ongoing advice services has led us to conservatively set aside funds to cover potential redress costs.”
This move positions Ascot Lloyd alongside other major advice firms addressing similar issues. St James’s Place has allocated approximately £430 million, while Quilter set aside £76 million to provide redress to clients who did not receive the annual reviews they paid for, following the FCA’s industry-wide review.
Beyond the ongoing advice provision, Ascot Lloyd’s financial statements note potential redress related to historic business acquisitions, prior to their integration into the firm. While the precise cost remains uncertain, no additional provision has been made for these cases, which are also understood to relate to ongoing advice services.
Growth Amid Challenges
Supported by Nordic Capital since 2022, Ascot Lloyd has expanded significantly through over 50 acquisitions since its 2017 merger with Bellpenny, backed by former private equity partner Oaktree Capital Management. The firm now manages £11 billion in assets for 33,000 clients. Despite the redress provision, Ascot Lloyd reported a 13% revenue increase to £82.9 million in 2024. However, a £3.5 million interest expense tied to the advice review contributed to a pre-tax loss of £19.5 million, with an operating loss of £16.1 million. Excluding exceptional items, adjusted EBITDA rose from £11.5 million to £14 million, demonstrating solid underlying performance.
Francis Jackson, who became CEO in August 2024, expressed confidence in the firm’s future. “With significant financial resources, we are well-placed to expand our UK presence through partnerships with high-quality businesses that share our values. Our dedication to client excellence will underpin both organic and inorganic growth,” he said.
Client Attrition and Investment Arm Updates
Ascot Lloyd’s investment management arm, recently rebranded from Avellemey to Ascot Lloyd Investment Management, reported a slight increase in assets under management, from £2.5 billion to £2.9 billion. However, this growth was offset by net outflows due to client losses and withdrawals, partly linked to adviser departures in 2024. The acquisition of Whitechurch Securities provided some support, but challenges remained.
The investment arm has undergone notable leadership changes in 2025, with Graham Bentley stepping back as chief investment officer following the departure of investment director Stephen Lloyd. David Morcher took over as CIO earlier this month, marking a new phase for the division.
If you think you may have been affected by inadequate ongoing advice services, but you aren’t comfortable bringing a complaint against the firm yourself, we offer expert support. Book a free call with our claim experts to explore your options and seek assistance in securing redress from financial advisers.
