Wealth manager Full Circle has fallen into administration after losing a court battle
Wealth manager Full Circle Asset Management has slipped into administration, after losing a court battle with a client who was seeking £1.8m in damages.
Administrators were appointed at Kent-based Full Circle at the end of December, just weeks after a High Court judge ruled the firm must pay former client David Rocker an as-yet undecided amount.
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Rocker had claimed Full Circle had mismanaged his medium-risk investment portfolio, after more than half its £1.5m value was wiped off. The judge agreed that the wealth manager was in breach of both mandate and contract, as it had failed to sell assets which lost more than five per cent of their value.
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If Full Circle does not have enough assets to cover its liabilities as the administration proceeds, the claims will be shifted to the Financial Services Compensation Scheme (FSCS) to pay out. Since the FSCS is funded by a levy charged on financial services firms, this means the costs of Full Circle’s failure will be spread across the industry.
The administrators, PCR, said that all client money is in segregated accounts and is therefore not in danger. It added that it plans to sell the business as a going concern, and had for now kept on the existing management team to provide “continuity”.
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