The Financial Services Compensation Scheme has paid out £5.7m so far to nearly 800 customers of collapsed discretionary fund manager Strand Capital.
The payments were made to 796 investors over the past two weeks. The payments related to client cash only.
The compensation was paid directly into customers’ self-invested personal pensions.
An administrator’s report published in January shed light on a host of failings that led to the collapse of the firm, which was put into special administration in May last year.
A statement from the FSCS says: “Since the reconciliation of client cash has not yet been completed, and shortfalls have yet to be finalised, FSCS has stepped in and has compensated in relation to the whole cash balance held by clients, up to the £50,000 limit.”
It says: “Eligible customers who held cash through other SIPP providers, or directly with Strand, will receive compensation payments over the next few weeks.”
The FSCS says it will continue to work with the joint special administrators of Strand so that customers get back their assets as soon as possible.
The lifeboat fund expects the administrators to seek court approval for a distribution plan, which it predicts will take a number of months.
It says some customers will have had more than £50,000 cash.