Financial Services Compensation Scheme  

FSCS receives 126 claims against failed DFM

FSCS receives 126 claims against failed DFM

The Financial Services Compensation Scheme has received 126 claims against failed discretionary fund management firm Strand Capital, which will now be passed to the scheme's claims processing team for assessment.

In an update on its website, the FSCS confirmed Strand Capital may owe money to its customers and therefore claims are now being passed on for assessment.

There are negligence claims against the firm, which was declared in default in September 2017, that may relate to unsuitable advice to transfer money into a self-invested personal pension, the FSCS said.

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As a DFM Strand Capital had advice permissions.

The FSCS said it was aware that FCA authorised advisers may have recommended customers invest with Strand Capital or that they transfer their existing pensions into a Sipp. 

In addition, the FSCS has returned money to approximately 2,000 customers whose cash was held with Strand Capital Limited, to the tune of £6.3m.

This was after Smith & Williamson and LA Business Recovery were appointed as joint administrators to carry out an assessment of the client money and assets held by the firm with a view to returning as much money to them as possible.

But the lifeboat scheme stated if these clients felt they had further losses due to unsuitable advice they will be able to submit a further claim against the company.

Strand Capital went into insolvency in May last year and is estimated to have had about 3,000 customers on its books.

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