What Safeguards are there to Reduce Risk to my Assets?

Casterbridge Infrastructure flow chart cropped

Our regulator the FCA has placed failing firms into administration. Recent press coverage has raised questions about the protection of clients’ assets from fees levied by liquidators. What’s different about the protection Casterbridge Wealth works within?

At Casterbridge Wealth we focus on what we do best, Investment Management, and have enlisted the services of industry experts Raymond James to provide trading facilities & administration services along with Pershing Securities as the custodian of your assets.

As a result, Casterbridge Wealth do not hold client money or act as a custodian.

As a smaller firm, whilst not part of a bigger group our focus has been working with partners that are well capitalised, financially sound and well governed. Pershing, as part of BNY Mellon, scores well on all of these points. Firms that have recently failed are not the same as Pershing/BNY Mellon in this regard.

We aspire to provide the best of both worlds, having a layered structure to our proposition as illustrated in the slide above allows us to give you, our clients:

  •  A Discretionary Fund Manager that is nimble and independent (of buy lists, internal and external corporate influences)
  •  Through our partnership with Raymond James and Pershing our clients benefit from industry standard levels of protection

The regulator (FCA) has put some smaller firms into liquidation, for various reasons – their business models were significantly different from ours.

  •    To ensure the return of client assets as soon as reasonably practicable;
  •    To engage with market bodies and regulators in a timely fashion; and
  •    To rescue the investment firm as a going concern or to wind it up in the best interest of its creditors

The first responsibility is what investors care about as they are likely to suffer financial loss, if not dealt with properly.

When looking back over recent cases of Discretionary Fund Manager’s (DFM) going into ‘special administration’ the three cases (Pritchard Stockbrokers, Fyshe Horton Finney and more recently Beaufort Securities) carry a common theme, setting aside the size of administrative costs levied by their ‘special administrators’

  •    All three firms held client money and had their own separate companies (nominees) to provide safe custody of their client’s assets. For our clients this risk lies at the level of Raymond                 James and Pershing not with Casterbridge Wealth.

Raymond James have also released a statement on the matter themselves, which can be read here.

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