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Strand Capital Limited – Is your money at risk?

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Discretionary Fund Manager Strand Capital Limited has been declared in Special Administration. We are urging anyone with an account with the failed firm to get in touch today.

Strand Capital Limited

Discretionary Fund Managers (DFMs) are appointed to invest on behalf of their clients. They invest through a variety of securities, creating bespoke portfolios of investments. Many people in the UK have accounts with Strand Capital as part of their SIPP pension. However, the London-based DFM entered voluntary administration in May 2017 after experiencing financial difficulties.

Entering administration

Strand Capital Limited was bought by Optima Worldwide back in 2014 for £982,389. The firm had a staggering 3,000 clients and £86 million under its management.

It was reported that the DFM informed the Financial Conduct Authority (FCA) of its plans to wind down in March 2017. It then came to a voluntary agreement with the FCA to a restriction on its permissions. The agreement meant it could not dispose of its assets without the regulator’s permission. In addition, it could not handle client money or perform any regulated activity without the regulator’s permission.

Financial difficulties

Joseph Egerton was appointed director of the DFM in its winding up process. He confirmed the firms reasoning for winding up was because the company’s controlling party, Optima Worldwide, no longer wanted Strand Capital Limited as part of its group. The firms financial statements published in March 2017 showed that the firm had been facing financial difficulties reporting a loss after taxation of £204,975 for 2016, compared to a loss of £17,627 for 2015.

Upon its announcement, the FCA warned that, in the event clients are short changed as a result of the DFM entering into administration, claims may fall on the Financial Services Compensation Scheme (FSCS). Subsequently the FSCS declared Strand Capital Limited in default, opening the door to payouts.

Direct pay-outs

Latest figures produced have confirmed that the FSCS has paid out £5.7 million so far to nearly 800 customers of the collapsed DFM, and the compensation has been paid directly into the customers’ self-invested personal pensions.

Do you have an account with Strand Capital as part of your SIPP? If so, your money could be at risk. Get in touch today to see if you can make a claim.