Discretionary fund manager Strand Capital has formally started insolvency proceedings which will affect the thousands of customers it has on its books.
According to an update from the Financial Conduct Authority, the investment firm has formally entered special administration after an assessment found it was no longer solvent.
It is estimated that around 3,000 customers will be affected by the company going into administration.
Smith & Williamson and LA Business Recovery have been appointed as joint administrators and will contact all affected customers in “due course”, the financial watchdog stated.
The special administrators will carry out an assessment of the client money and assets held by the firm to confirm the current position.
They will then return as much client money to customers as quickly as possible.
The FCA said if the money if not returned to Strand’s clients, then they might have access to the Financial Services Compensation Scheme, depending on their individual circumstances.
According to the company's website, Strand Capital manages five model portfolios, all with a minimum investment of £10,000.