The UK's Financial Conduct Authority has announced that Strand Capital Ltd, an investment management firm, has formally entered the Special Administration Regime insolvency proceedings.

Having reached an assessment that it was no longer solvent, Strand asked a court to initiate insolvency proceedings under the Special Administration Regime. Strand has approximately 3,000 customers.

The joint special administrators are Adam Stephens and Henry Shinners of Smith & Williamson and Virgil Levy of LA Business Recovery Limited. They will contact all affected customers in due course. They will carry out an assessment of the client money and assets held by the firm and will then return as much of it to customers as quickly as possible. Access to the Financial Services Compensation Scheme is in the offing, although not guaranteed at this stage.

HM Government introduced the SAR in 2011 to help resolve situations in which investment firms fail while holding client money and/or assets in accordance with CASS, the FCA's Client Assets Sourcebook rules.