Financial Services Compensation Scheme  

Adviser FSCS levy could jump as payouts for failed DFM start

Adviser FSCS levy could jump as payouts for failed DFM start

The Financial Services Compensation Scheme has said it will start making payouts to investors who lost money with a failed discretionary fund manager.

Strand Capital went into insolvency last year and the FSCS has now said it will start returning client cash in April or May.

The FSCS said it will provide more updates in due course and said the administrator, Smith & Williamson, would also be providing updates.

Strand Capital formally entered special administration in May after an assessment found it was no longer solvent.

At the time it was estimated around 3,000 customers would be affected by the company's collapse.

According to the company's website, Strand Capital managed five model portfolios, all with a minimum investment of £10,000.

Strand Capital was declared in default by the FSCS in September.

According to the FCA Register, Strand Capital held permissions to advise on investments, which means FSCS payouts could send advisers' levy for the scheme higher, if claims made are related to advice.

damian.fantato@ft.com