Basildon-based wealth manager Logic Investments Ltd (FRN 516459) has entered special administration today after the firm was declared insolvent.
In December Logic agreed to an FCA requirement preventing it from taking on new clients, client money or assets or moving existing client money without FCA consent.
The FCA said this was done to protect clients.
Directors of the firm have concluded the business is insolvent.
Alex Watkins and Ed Boyle of Interpath Ltd have been appointed as joint special administrators.
Logic Investments was FCA authorised firm and regulated to provide a variety of wealth management services.
The joint special administrators will manage client claims against the firm and return client money and custody asset funds to clients “where possible,“ they said.
The FCA is working with the joint special administrators to, "seek the best outcome for clients."
In a statement on the Logic Investments website, the administrators 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.
“The major shareholders indicated they were not willing to provide funding to cover potential redress liabilities, which are uncertain in size and timing. Without that support, and given Logic’s current financial position, the board resolved that entering Special Administration is the responsible course of action.”
Logic Investments offered execution-only dealing and platform solutions for institutions, other wealth managers and some private clients.
According to the firm’s last set of accounts, the firm had made a “strategic pivot” away from advisory and discretionary investment management in 2021, and was now operating solely as a CASS-regulated custody and execution-only service provider. The company services a mix of retail, professional and institutional clients via direct relationships and intermediated relationships through regulated wealth managers.
Logic was also an approved ISA manager, with execution-only services spanning equities, ETFs, fixed income and structured products.
• Clients are advised to contact the administrators at: