Administrators have been appointed to a UK financial firm, an official notice has revealed. LCM Family Limited went into administration on April 28 after agreeing to a voluntary requirement with the Financial Conduct Authority (FCA). Louise Longley and Gary Shankland of BTG Begbies Traynor (Central) LLP were appointed as joint administrators of the firm, and will manage its affairs during the process.
The company was previously known as LCM Wealth Management Limited. Administrators are now acting in the interest of creditors of the firm. Administration is a process whereby an outside party takes over control of a business to save a viable part of it. LCM Family Limited is authorised by the FCA to offer its customers financial advice and related investment services, while it is also regulated by the Solicitors Regulation Authority (SRA) to provide legal services.
Earlier in April, LCM agreed to a voluntary requirement with the FCA, restricting the activities it can undertake, as stated in an official FCA report.
“The FCA continues to supervise LCM and will work closely with the joint administrators,” the report states.
“The joint administrators are responsible for acting in the best interests of the people who are owed money by LCM, and they must work as quickly and efficiently as possible.
“As the regulator of LCM, we will continue to engage with the joint administrators and take any necessary actions to seek the best outcome for customers.”
The company can “no longer conduct regulated activities”. It will no longer be able to “act for new or existing customers”, the FCA says. The previously agreed requirements also stopped it from dealing with or disposing of any of its assets and any customer assets or money without the FCA’s consent.
The joint administrators will now assess the Manchester-based firm’s financial position and decide how to proceed with the administration.
However, LCM does not hold customer funds directly and uses third-party custodians. Customers can still contact the joint administrators for information on their money, portfolios, and the value of investments.