Discretionary fund manager (DFM) Strand Capital has entered special administration,
In March New Model Adviser® revealed the DFM was set to be wound down by its owners Optima Worldwide Group. As a result of this decision the company reached an agreement with the regulator to limit its permissions.
Financial statements filed at Companies House covering the year to 30 June 2016 said Strand Capital has £86 million of funds under management and partners with 10 IFAs. According to a notice published by the Financial Conduct Authority (FCA) Strand Capital currently has around 3,000 clients.
The special administration regime was set up by the government in 2011 to deal with investment companies which hold client assets when they collapse. Its main aim to make it easier to return money to clients.
Adam Stephens and Henryu Shinners of Smith & Williamson and Virgil Levy of LA Business Recovery have been appointed as special administrator to Strand Capital. The FCA said anyone with claims should visit Strand Capital's website.
The regulator said it could not guarantee that all money would be returned to clients.
'The special administrators will carry out an assessment of the client money and assets held by the firm to confirm the current position,' it said.
'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.'