View more on these topics

Collapsed DFM rescue plan sees 2,500 customers get money back

A rescue plan for collapsed discretionary fund manager Strand Capital has been approved by the High Court, under which “nearly all” of the 2,500 clients holding investments with Strand will have these returned to them in full.

A note from administrators Smith and Williamson says that “in almost all cases” the costs have been borne by the Financial Services Compensation Scheme, making the return of assets possible.

Smith and Williamson partner Adam Stephens says: “We believe this distribution plan provides the best outcome for Strand’s clients as we are now able to return almost all clients’ assets to them in full. The approval of the distribution plan, with the support of the FSCS, represents the achievement of an important milestone in this insolvency.”

Strand’s insolvency dates back to 2016, when the firm explored a management buy out as the main shareholder prepared to sell their interest.

The buy out failed to materialise, and key senior management, who held the relevant FCA regulated controlled functions, left Strand in March 2017.

Smith and Williamson says this was linked to the the breakdown of the relationship with the Strand’s trading platform provider. Strand agreed with the FCA to cease carrying on regulated activity – effectively prohibiting Strand from dealing with client monies and client assets, leading to its insolvency.

Strand had around £86m in assets under management at the time of insolvency, according to estimates.

Money Marketing revealed in 2018 that the FSCS had already paid out at least £6m in compensation, while, earlier this year, administration documents revealed that the administrators themselves had racked up fees in excess of £2m for their work.



FCA clarifies providers not responsible for suitability on DB transfers

The watchdog has confirmed pension providers are not responsible for the suitability of advice on defined benefit transfers Money Marketing can confirm. A letter the watchdog sent to product providers last week about their DB transfer procedures inspired a number of conflicting interpretations. In a Dear CEO letter sent to the heads of major providers, the FCA […]

Spring Statement Pounds

Standard Life Aberdeen staff anger over ‘zero bonuses’

Standard Life Aberdeen staff are are up in arms after the group has cut bonuses to many staff and has handed others zero – a “doughnut” payout – according to The Telegraph. Bonuses across the company have dropped significantly after it saw more than £40bn outflows during 2018, the paper reports. One insider told The […]


Quilter to add 400 advisers with Lighthouse acquisition

Quilter is set to grow its adviser base by another 400 advisers after agreeing a deal to buy national firm Lighthouse for £46.2m. Quilter’s network Intrinsic already has 3,500 avdvisers, including 1,600 restricted financial planners, and it is also the parent company of national Quilter Private Client Advisers. In a stock exchange announcment this morning […]


How much are advisers charging for pension transfers?

Defined benefit pension transfer charges are being put under the microscope again as the regulator turns over more potential conflicts of interest. With the British Steel Pension Scheme the latest to dominate headlines and the FCA ready to interrogate further as it extends its review to include all firms authorised to give pension transfer advice, […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm