Discretionary fund manager in administration

The Financial Conduct Authority (FCA) has announced that Strand Capital, an investment management firm with around 3,000 clients, has entered the special administration regime (SAR) insolvency proceedings after reaching an assessment that it was no longer solvent

Adam Stephens, director, and Henry Shinners, partner, of Smith & Williamson and Virgil Levy, director, of LA Business Recovery Ltd have been appointed as joint special administrators of the company, which operated as a discretionary fund manager with a range of model portfolios and was believed to have around £86m of funds under management.

Reports filed with Companies House said Strand suffered pre-tax losses of £235,297 in the 12 months to the end of June 2016.

The special administrators will carry out an assessment of the client money and assets held by the firm to confirm the current position.

Following the assessment, the special administrators will return as much client money to customers as quickly as possible.

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, although clients with than £50,000 with the firm might not be covered for the full amount of losses under the scheme’s terms.

The SAR was introduced by the government in 2011 to help resolve situations where investment firms, which hold client money and/or assets under the FCA’s client assets sourcebook rules, fail.

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