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Customers of failed wealth management business Strand Capital may face a long wait to find out if they will get all of their money back, the administrator of the company has warned.
The London-based firm, which runs £86 million on behalf of around 3,000 clients, was placed in administration this week, following the removal of its regulatory permission to do business.
That followed the exit of the key senior staff members authorised to deal with clients, after the collapse of a management buyout last year.
'Substantial professional fees have been accrued in dealing with the
above and related matters', warned adminstrators Adam Stephens and Henry Shinners of Smith & Williamson and Virgil Harsham of LA Business Recovery in a statment.
'These have not yet been paid in full. In light of the available records the joint special administrators are unable to confirm whether or not the company has a client money or client assets deficit at present.'
The staff turnover additionally meant that they have not been able to access full details of clients held on third-party platforms.
‘These issues are adversely impacting on the ability of the special administrators to undertake client reconciliations,’ they added.
‘We urge the company’s current and former personnel/contractors to make contact with the special administrators, as they may be in a position to assist.’
Recent financial statements showed Strand made a post-tax loss of £204,975 last year, compared to a loss of £17,627 in 2015. It was bought by Optima Worldwide Group in 2014 for £982,389.