A Basildon-based wealth management company has entered special administration after being declared insolvent. Logic Investments Ltd, which was authorised and regulated by the Financial Conduct Authority (FCA), formally entered administration last week.
The move comes after restrictions were placed on the firm late last year. In December, Logic Investments agreed to an FCA requirement preventing it from taking on new clients, handling client money or assets, or moving existing client money without direct FCA consent. The regulator said these measures were put in place to protect clients while concerns were assessed.
The company’s directors have now concluded that the business is insolvent.
As a result, Alex Watkins and Ed Boyle of Interpath Ltd have been appointed as joint special administrators.
Logic Investments previously provided a range of wealth management services. The administrators will now oversee client claims and work to return money and custody assets “where possible”.
The FCA said it is working closely with the administrators to “seek the best outcome for clients”.
In a statement published on the Logic Investments website, the administrators confirmed the firm did not have the funds required to continue operating normally.
They said: “Logic does not have sufficient funds to meet potential redress liabilities (compensation that may be due to clients) and continue(s) operating in a normal way.”
They added that the company’s major shareholders had declined to provide additional funding to cover these liabilities, which were described as uncertain in both size and timing.
The administrators said that without this support, entering special administration was considered the only responsible option.
Logic Investments offered execution-only dealing services and custody solutions for institutions, other wealth managers and some private clients.
The firm also acted as an approved ISA manager, with services covering equities, ETFs, fixed income and structured products.
According to the company’s most recent accounts, Logic Investments made a “strategic pivot” in 2021.
It moved away from advisory and discretionary investment management and began operating solely as a CASS-regulated custody and execution-only provider.
The firm served a mix of retail, professional and institutional clients both directly and through intermediaries.
Clients who hold assets with the firm are encouraged to contact the administrators for further guidance.
They can email: admin@interpath.com. Creditors should email: creditors@interpath.com.
More information, including FAQs, is available on the Logic Investments website. The FCA has also warned customers to be cautious of possible scam approaches during this period.
The special administration process will now focus on assessing client claims, securing remaining assets and determining how funds can be returned. The FCA said it will continue to work with the administrators as the process moves forward.