Claims against Strand Capital Ltd to be passed to FSCS’s claims processing team in Nov
The Compensation Scheme has concluded that Strand Capital Ltd may owe a civil liability to its customers.
In November, claims against Strand Capital Ltd will be passed to the claims processing team of the UK Financial Services Compensation Scheme (FSCS) for assessment, according to a recent update on the case provided by the body.
Strand was an investment management firm that was placed into Special Administration on May 17, 2017. In the latest update, FSCS says it has concluded that Strand Capital may owe a civil liability to its customers, that is, that there is the potential the firm could be sued in court.
The Scheme is currently finalising its approach to how it will deal with these claims. Each claim will need to be considered individually to see if compensation is due.
The body says it is aware that FCA-authorised advisers may have recommended to customers to invest with Strand Capital Ltd. Or they may have recommended transferring existing pensions or investments through a self-invested personal pension (SIPP). If this applies to you and the adviser is still trading, you need to complain to that adviser, FSCS explains. If the adviser rejects the complaint, you can take your complaint to the Financial Ombudsman Service (FOS).
In case the advice came from an FCA authorised adviser that is now not trading, you should firstly submit a claim to FSCS against the financial adviser.
FSCS considers different factors when calculating losses on pension advice (a claim against financial advisers) compared to discretionary fund manager investments (a claim against discretionary fund managers, in this case Strand Capital Ltd).
This means one may be eligible to receive more compensation for any losses by claiming against one’s financial adviser than if one just made a claim against one’s discretionary fund manager.
