Charles Stanley has agreed a deal to take on 220 clients of collapsed wealth management firm Full Circle Asset Management.
In a letter seen by FTAdviser today (November 7), the joint administrators of the firm announced all clients would be offered terms to transfer the management of their investment portfolios to Charles Stanley.
Charles Stanley had already acted as custodian of the assets under Full Circle.
Mark Phillips, a partner at PCR, which acted as administrators, said: "We are pleased this is preceding with Charles Stanley as it will give continuity, with a company that is known to most of the clients as an existing custodian of their funds. We have written to all clients to explain the process and all client funds remain ring fenced and secure."
Clients were given three months to consider the offer or transfer their assets elsewhere.
Kent-based Full Circle Asset Management entered administration at the end of December 2017 following legal action from a client.
David Rocker had taken Full Circle to court after his investment pot of £1.5m fell by more than 50 per cent, and the firm was ordered to pay damages in December 2017.
It was ruled that firm had deviated from the risk profile agreed with Mr Rocker, and failed to implement a "stop loss policy" as had been agreed.
At the time of entering administration there were dozens of pending complaints against the firm, awaiting adjudication by the Financial Ombudsman.
Most of those complaints related to investors being sold products that were not consistent with their attitude to risk.
The administrators of the company said there was not likely to be sufficient money within the company to pay all of the liabilities, but that the extent of any sale process would determine to extent to which liabilities could be met by the company, rather than the Financial Services Compensation Scheme (FSCS).
david.thorpe@ft.com
