A Sipp and ISA firm, which went into administration this week, has been bought by Embark Group, the parent company of Hornbuckle, it was announced this morning.

Avalon Investment Services, described by administrators KPMG as one of only a small number accredited in England to deal with Junior ISAs for children in local authority care, employs 20 staff at its head office in Tetbury, Gloucestershire. All 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.

No fee for the takeover has been disclosed.

{desktop}{/desktop}{mobile}{/mobile}

The appointment of KPMG as joint special administrators to Avalon followed a claim made against the company’s former managing director relating to allegations of fraud.

A KPMG statement read: “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.”

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.

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.”