Rescue plan for collapsed DFM approved

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Adminstrators’ plans to wind up discretionary fund manager Strand Capital have been approved by creditors, according to Companies House filings.

The filings released this month show that proposals from joint administrators Smith & Williamson and LA Business Recovery were approved at a meeting on 21 July.

A creditors committee has also been appointed, which includes members from the Financial Services Compensation Scheme, James Hay Pension Trustees and Sipp provider Intelligent Money.

The FCA announced in May that Strand Capital had been put into special administration.  Strand had applied to the court to start insolvency proceedings after making an assessment it could no longer continue.

Client assets under management at the time of the special administration were around £100m. In their proposals, the joint administrators say they anticipate some funds will be able to be returned to clients. The administrators are working out how much is owed to clients and when they will be able to return their investments.

According to the proposals document, the administrators faced a challenge at the start of the administration process because there was no “live business” related to Strand Capital.

The document says: “This was on the basis that access to the online trading platform was not immediately forthcoming, little activity was being undertaken at the company’s premises, and it had no current employees.”

The document says it is most likely the company will be dissolved.