This page is for Customers of Strand Capital Limited (Strand) an investment management firm that were placed into Special Administration on 17 May 2017.
FSCS recently made further payments to customers who had client money with Strand. Payments have been made to the customers of two SIPP providers; EasySipp and The Wise SIPP and were made direct to those providers. The payments relate to client money only and not to assets. FSCS wrote to those customers on 25 June 2018 to let them know that their payment had been made. For many customers this payment represents just the first stage in returning property to them.
FSCS has already paid a number of customers of Strand for claims connected with the return of client money to customers. FSCS is working with the Joint Special Administrators to return the remaining client money. FSCS also anticipates that it will have a role, working with the Joint Special Administrators, in the return of assets to clients.
Clients who feel they have any other claim against Strand in connection with their dealings with Strand can make a claim through the FSCS online claims service.
FSCS has started paying eligible client money balances, up to the £50,000 limit. For customers who held their account under a Self-Invested Personal Pension (SIPP) the payment will be made direct to the Self-Invested Personal Pension provider
To qualify for compensation you must be eligible under the Financial Conduct Authority’s COMP rules which set out which types of claim are eligible for compensation, and limit how much compensation we are allowed to pay.
It is likely that claims from individuals and small businesses would be covered.
This means that FSCS should be able to provide compensation in nearly all Strand cases, subject to its limits.
Full details of who is eligible to benefit from FSCS protection can be found in subsection 4.2 of the COMP Rules.
If your claim is for the return of your property, client money and /or client assets you do not need to do anything in respect of FSCS – we will seek to pay compensation automatically, after you have confirmed your agreement with the Joint Special Administrators.
The Joint Special Administrators will issue instructions in respect of the return of assets when they are ready to begin that process. There are a number of steps that the Joint Special Administrators will have to take before assets can be returned. As this process begins, a much clearer timetable will emerge. We will publish details of the expected timescales in the coming months.
If you want to make any other type of claim, for example a negligence or mismanagement claim in respect of losses over and above those covered by the return of cash and assets, you should make that directly with FSCS using the online claims service.
FSCS has already paid £5.9m to 1405 Strand Capital Limited customers in respect of their client cash balance. Payments so far have been made to customer’s Self-Invested Personal Pension provider. FSCS is still working on returning client money to some remaining customers.
FSCS is likely to have a role in the return of customer assets.
As well as providing compensation, to the extent that FSCS receives a distribution from the insolvent estate of Strand, it will pass on any recoveries it receives in excess of the compensation we have paid out so that claimants are not worse off as a result of having first accepted FSCS compensation.
The FSCS protection limit is £50,000 per eligible customer. This limit would apply to the combined total of return of funds claims and any other claim type. Find out more about FSCS investment limits.
FSCS is aware that there are a number of Customers of Strand Capital Limited with client money balances of more that £50,000.
As well as providing compensation, FSCS expects to receive a distribution from the estate of Strand. If your balance is more than £50,000, FSCS will pass on any recoveries it receives in excess of the compensation we have paid out, so that claimants are not worse off as a result of having first accepted FSCS compensation.
FSCS has already paid the majority of eligible client money claims and is looking to complete the remainder soon. We understand that the Joint Special Administrators are aiming to commence returning assets towards the end of 2018 and into 2019, but the timing is dependent on the Joint Special Administrators gaining Creditors’ Committee and court approval of the Distribution Plan.
We will continue to update this page with the latest information and developments.
You can contact FSCS on 0800 678 1100. We will also continue to update this page with the latest information and developments.