Wealth boutique Strand Capital has entered into special administration.
The London-based discretionary manager, which runs £86 million for around 3,000 clients, had its permissions removed by the Financial Conduct Authority (FCA) in March.
Its owners subsequently said the business would be wound down as it is no longer solvent. Joint special administrators Adam Stephens and Henry Shinners of Smith & Williamson and LA Business Recovery’s Virgil Levy will carry out the proceedings.
Strand Capital was bought by Optima Worldwide Group in 2014 for £982,389.
Financial statements published earlier this month suggest it has faced difficulties in recent months. It made a loss after taxation of £204,975 for 2016, compared to a loss of £17,627 for 2015.
After it told the regulator it was going to wind down, the company came to an agreement with the FCA to have restrictions on its permissions which meant it cannot dispose of its assets without express permission.
The agreement also meant it could not handle client money without or perform any regulated activity without the regulator's permission.
Shortly after the news broke in March, the firm’s director and portfolio manager Hamilton Keats resigned from the business. On the same day, compliance expert Joseph Egerton was appointed as director of the DFM in order to help with the process of winding it down.
At the time, Egerton said he and the firm are working with the FCA to ensure the clients are not affected by the eventual closure of Strand.
‘The FCA has been fully engaged and is fully aware of what is happening,’ he said. ‘There is nothing being hidden from the FCA.’
Egerton said the firm was being wound up because its controlling party, Optima Worldwide, no longer wanted the DFM as part of the group.
‘Hamilton [Keats] has left, the owners want it wound down and they have appointed me to act as the director for the purpose of doing it. My role is to ensure the matter is dealt with properly and things are sorted out in the best way for clients,’ he said.