Strand Capital, a discretionary fund manager with a range of model portfolios, has begun insolvency proceedings, according to the regulator.
The Financial Conduct Authority (FCA) said the firm formally entered the Special Administration Regime insolvency proceedings on 17 May 2017 after concluding the business was no longer solvent.
Strand has approximately 3,000 customers and five model portfolios: Adventurous, Growth, Balanced, Defensive and Conservative. It also offered Lifestyling Options for clients approaching retirement.
The firm manages around £80m on behalf of clients, according to The Telegraph.
Reports filed with Companies House said Strand suffered pre-tax losses of £235,297 in the 12 months to the end of June 2016.
Joint special administrators have been appointed in the form of Adam Stephens and Henry Shinners of Smith & Williamson and Virgil Levy of LA Business Recovery, who all noted the rarity of cases like this as only a few DFMs have had to resort to calling in administrators.
A statement from the trio said: "Our objectives as special administrator are:
a) to ensure the return of client assets as soon as is reasonably practicable;
b) to engage with market bodies and regulators both here and abroad in a timely fashion;
c) to rescue the company as a going concern or to wind it up in the best interests of the creditors."
Stephens added: "The special administrators are working to achieve these. It is too early to be certain how matters will unfold, but we aim to fulfil statutory obligations to keep relevant stakeholders informed."
Levy said: "We are still gathering the company's books and records, including those in relation to client matters. We would ask that clients, and intermediaries, bear with us whilst we undertake this task."
They will contact customers in due course and will carry out an assessment of the client money and assets held by the firm to confirm the current position, according to the FCA.
Administrators are hoping to return as much money to customers as quickly as possibly but if this is not the case, clients may have to access the Financial Services Compensation Scheme, depending on their individual circumstances.
Customers are invited to email [email protected] for more information.
Unclear on job moves
Reforms not enough
McGhee joins from banking trade body
Our video series continues
In June 2016, immediately before the Brexit referendum, a curious thing happened.