The FSCS confirmed Wednesday that it has been working closely with joint special administrators Smith & Williamson on the arrangements for returning cash and assets to Strand’s customers.
“In respect of returning client cash, we anticipate making the first payments during the course of April or May 2018,” the FSCS said.
Around 3,000 customers were hit when the London-based firm went into administration.
In a March 2018 update to individuals with investments held by Strand, Smith & Williamson wrote: “A key aim of the special administration is to return client assets and client monies.
“There remain a number of practical and legal matters outstanding which preclude this from happening immediately, albeit the JSAs [joint special administrators] are working hard to resolve these issues.”
Smith & Williamson said that ongoing discussions with the FSCS have “resulted in a strategy being developed […] to enable an expedited payment to be made to clients in respect of all or part of their client money holdings using the compensation procedures of the FSCS”.
“The FSCS compensation limit of £50,000 ($70,668, €57,138) and eligibility criteria will apply to these compensation payments,” the administrator wrote.
The April/May 2018 payment is dependent on “proper engagement by relevant parties” that the JSAs and FSCS will be contacting in order to “broadly verify client money holdings, eligibility and to confirm and agree the mechanics of the process”.
No longer solvent
Strand Capital, owned by Optima Worldwide Group since 2014, formally entered the Special Administration Regime (SAR) insolvency proceedings on 17 May.
Having determined that it was no longer solvent, Strand made a court application to formally initiate insolvency proceedings under SAR.
In its last available results filed with Companies House in February, Strand registered a loss of £204,975 for the period between 1 April 2015 to 30 June 2016.
The discretionary manager’s assets stood at £86m and it had tie-ups with more than 10 IFA firms.