Citywire for Financial Professionals
Stay connected:

View the article online at http://citywire.co.uk/money/article/a1017994

Strand Capital investors warned of cash shortfall

Customers of failed wealth management business told to expect a long wait to get back all their money.

 
Strand Capital investors warned of cash shortfall

Customers of failed wealth management business Strand Capital may face a long wait to find out if they will get all of their money back, the administrator of the company has warned.

The London-based firm, which runs £86 million on behalf of around 3,000 clients, was placed in administration this week, following the removal of its regulatory permission to do business.

That followed the exit of the key senior staff members authorised to deal with clients, after the collapse of a management buyout last year.

'Substantial professional fees have been accrued in dealing with the
above and related matters', warned adminstrators Adam Stephens and Henry Shinners of Smith & Williamson and Virgil Harsham of LA Business Recovery in a statment.

'These have not yet been paid in full. In light of the available records the joint special administrators are unable to confirm whether or not the company has a client money or client assets deficit at present.'

The staff turnover additionally meant that they have not been able to access full details of clients held on third-party platforms.

‘These issues are adversely impacting on the ability of the special administrators to undertake client reconciliations,’ they added.

‘We urge the company’s current and former personnel/contractors to make contact with the special administrators, as they may be in a position to assist.’

Recent financial statements showed Strand made a post-tax loss of £204,975 last year, compared to a loss of £17,627 in 2015. It was bought by Optima Worldwide Group in 2014 for £982,389.

1 comment so far. Why not have your say?

SuffolkPensionsGirlie

May 19, 2017 at 09:37

Misleading article - A DFM has its own business bank accounts to run its business with.

A DFM's clients would have a separate client account and investments held by a nominee (nothing to do with the success or non success of a business).

Think of the clients when reporting with such sensationalist headlines.

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire Guide to Investment Trusts


In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

More about this:

What others are saying

Archive

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Read more...

European markets slump as soaring euro takes toll

by Daniel Grote on Jul 21, 2017 at 16:54

Sorry, this link is not
quite ready yet