FCA confirms City Financial Investment Company Limited is in administration
Investors in funds formerly managed by City Financial do not need to contact the FSCS.
The UK Financial Conduct Authority (FCA) has provided information to investors in the funds managed by City Financial Investment Company Limited.
The UK regulator confirms that on March 21, 2019, City Financial, an FCA-authorised firm, appointed Jason Baker and Geoffrey Rowley of FRP Advisory LLP (FRP) as joint administrators.
City Financial previously managed a number of funds. The funds are separate legal entities to City Financial and are not part of the administration. The funds have been transferred to a new fund manager or are in the process of being wound down.
City Financial previously managed a range of UK domiciled Undertakings for Collective Investments in Transferable Securities (UCITS) funds. As part of a deal agreed with Garraway Capital Management LLP on March 21, 2019, these UCITS funds were transferred to Valu-Trac Investment Management Ltd on March 25, 2019.
On March 25, 2019, Valu-Trac delegated investment management of these funds to Garraway and the funds were re-named. BNY Mellon remains the depositary for the funds.
City Financial was also previously the investment manager for a number of Irish domiciled self-managed UCITS funds. As part of the same deal with Garraway, Garraway replaced City Financial as investment manager to these UCITS funds on March 25, 2019. Northern Trust Fiduciary Services (Ireland) Ltd remains the depositary for the funds.
City Financial also acted as the investment manager for a number of Irish domiciled self-managed UCITS funds. As part of the same deal with Garraway, Garraway replaced City Financial as investment manager to these UCITS funds on March 25, 2019. Northern Trust Fiduciary Services (Ireland) Ltd remains the depositary for the funds.
The FCA notes that investors in funds formerly managed by City Financial do not need to contact Financial Services Compensation Scheme (FSCS). This is because the funds do not form part of the administration and have transferred to new fund managers.
All customers are advised to remain alert to the possibility of fraud. City Financial will write to direct investors in UK domiciled UCITS funds in due course. Otherwise, if a UCITS investor is cold called by someone claiming to be from City Financial, Garraway, Valu-Trac or any other company connected to the UCITS funds, the investor is advised to end the call and call the company back using the relevant numbers provided by the FCA.
It is unlikely that FRP will contact investors in the funds that were managed by City Financial. This is because the funds are separate legal entities to City Financial and are not part of the administration. Therefore, if investors are cold called by someone claiming to be from FRP or any other company involved in City Financial’s administration, it is best to end the call and call the company back using the number provided by the FCA.