FSCS provides update on Strand Capital Ltd
The joint special administrators are continuing to return assets to Strand customers by transfers to new brokers chosen by Strand customers.
The UK Financial Services Compensation Scheme (FSCS) on Monday provided an update on the Strand Capital Ltd matter. Strand was an investment management firm that was placed into Special Administration on May 17, 2017.
As per the update issued by the FSCS on July 8, 2019, the joint special administrators are continuing to return assets to Strand customers by transfers to new brokers chosen by Strand customers. In almost all instances, FSCS will meet the costs of the special administration on behalf of customers. These asset transfer costs will be settled directly with the special administrator, allowing the return of customers’ assets whole in due course.
Following High Court approval on April 2, 2019, a formal distribution plan of clients’ custody assets has been agreed. This paved the way for customer assets to move to new brokers (subject to clients providing instructions to the Special Administrators).
FSCS has already paid £5.9 million to 1,405 Strand Capital Ltd 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.
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 it has 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. However, the Scheme is aware that there are a number of Customers of Strand 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 one’s balance is more than £50,000, FSCS will pass on any recoveries it receives in excess of the compensation it has paid out, so that claimants are not worse off as a result of having first accepted FSCS compensation.
You can find out more from the Joint Special Administrators (Smith & Williamson) here.