3,000 clients may have to turn to FSCS to get their money back
Investment management firm Strand Capital has been put into special administration, the FCA has announced.
Strand has around 3,000 clients, and brands itself as a “modern discretionary fund management” service. It offers five risk rated portfolios from conservative through to adventurous as well as lifestyling options for decumulation clients.
According to the FCA register the firm has been authorised since 2009, with permissions to advise on all investments except pension transfers or opt outs.
In a note sent by the FCA yesterday evening, it said that Strand had applied to the court to start insolvency proceedings after making an assessment it could no longer continue.
Special administrators Smith and Wiliamson and LA Business Recovery will be contacting all affected customers “in due course” after assessing what client money is held by the firm and its current financial position.
The FCA warned that in the event clients are short changed, claims may fall on the Financial Services Compensation Scheme.
It said: “If the assessment of client money results in Strand’s clients not having all of their money returned, they may have access to the Financial Services Compensation Scheme, depending on their individual circumstances.”
The FCA register says Strand has agreed to cease all regulated business and retain all its assets.
Strand has entered insolvency under the Special Administration regime, which was bought in in 2011 to solve failures at firms covered by the FCA’s Client Asset Sourcebook rules.