Strand Capital, a discretionary fund manager with a range of model portfolios, has begun insolvency proceedings, according to the Financial Conduct Authority (FCA).
The regulator 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 admininstrators have been appointed in the form of Adam Stephens and Henry Shinners of Smith & Williamson and Virgil Levy of LA Business Recovery.
In a statement they said they had three objectives: to ensure the return of client assets as soon as reasonably practicable; to engage with market bodies and regulators in the UK and abroad in a timely fashion; and either to rescue the Company as a going concern or wind it up in the best interests of the creditors.
Stephens added: "The special administrators are working to achieve these objectives. It is too early to be certain how matters will unfold, but we aim to fulfil statutory obligations to keep relevant stakeholders informed."
Levy added: "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 while we undertake this task."
According to the FCA, the special admininstrators 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.
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.
Joining London team
Previously at Old Mutual Wealth
Will introduce a cap on cost of care
Inertia has become a key policy mechanism