Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

FSCS pays out £5.7m to clients of failed wealth firm

FSCS pays out £5.7m to clients of failed wealth firm

The Financial Services Compensation Scheme (FSCS) has paid £5.7 million to clients of failed wealth firm Strand Capital.

The cash was distributed to 796 customers over the last two weeks. That accounts for almost all the £6 million the FSCS budgeted for clients of Strand earlier this year.

The payments were made to clients who held cash in a Sipp account with the company.

Eligible customers who held cash through other Sipp providers, or directly with Strand, will receive compensation payments over the next few weeks.

Strand had £100 million of client assets under management when it went into administration in May last year

Shortly after its collapse, administrators warned Strand clients they may face a long wait to find out whether they will get all of their money back.

Since the reconciliation of client cash has taken over a year, the FSCS stepped in and compensated cash balance up to the £50,000 limit.

The move is a temporary disbursement pending the release of client money by the joint special administrators (JSAs), which will be passed on to the FSCS in the first instance.

However, the FSCS will pass on any recovered client cash in excess of £50,000 that has already been paid out.

In a statement the FSCS commented: 'This is just the first step in returning funds to Strand customers.

'The payments made this week go a long way towards returning customer cash. FSCS will continue to work with the JSAs of Strand so that customers get back their assets as soon as possible.

'We anticipate that a conclusion to this part of the process will require the JSAs to seek court approval of a distribution plan, which is likely to be a number of months away.' 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Wealth Manager on Twitter