Charles Stanley has acquired a £59 million client bank of collapsed wealth firm Full Circle Asset Management.
In a letter seen by Wealth Manager, Full Circle managing director Andrew Selsby told clients they would be shortly receiving formal notification from the administrators PCR, together with an introduction letter from Charles Stanley.
In total, 206 clients have been offered the opportunity to transfer to Charles Stanley under the deal. Charles Stanley was already providing custody and administration to Full Circle before its collapse.
'Our long-standing relationship with Charles Stanley means we can be confident that they will value you as clients as much as we have over the years,' the letter read.
'In addition, as a larger firm, they will be able to provide you with a wider array of services and, for our clients further afield, perhaps a local presence. A handover to Charles Stanley will offer an overall cost saving, as well as efficiency where they are the current custodian.'
Full Circle clients will have up to three months to consider the Charles Stanley offer, or transfer to an alternative wealth manager.
Selsby will remain at Full Circle for the interim to ensure a smooth transition.
Commenting on the arrangement, PCR partner Mark Phillips said: 'We are pleased that this is proceeding with Charles Stanley as it will give continuity to the clients with a company that is known to most clients as an existing custodian of their funds.
'We have written to all clients to explain the process and I would like to stress that all client funds remain ringfenced and secure.'
He added: 'I would like to take this opportunity to thank Andrew Selsby and his team who have worked tirelessly throughout the administration process to manage the client funds and to assist in achieving a positive outcome.'
David Rocker, a retired businessman, took the company to court claiming that FCAM was in breach of contract when managing his medium risk portfolio.
The judge found Full Circle in breach of mandate as well as contract each time it failed to sell an asset which lost more than 5% of its value.