This means that the FSCS is convinced that the DFM can’t pay claims made against it
The Financial Services Compensation Scheme has declared that Discretionary Fund Manager, Strand Capital, is now in default and cannot pay claims to clients or former clients. It also means that the FSCS is likely to have to step in to pay success claims made against the actions of Strand Capital.
According to Strand Capital’s public files made available on Companies House, the DFM had £86Million under management in the year up to 30th June 2016, which may belong to around 3000 clients.
Strand Capital has already gone into a Special Administration as of May 2017, the aim of which is usually the returning of money to clients more easily than a normal administration procedure, but the FCA gave no such guarantees at the time.
With the firm now in default with the FSCS, it means claimants may be limited to a payout of £50,000.