The Financial Services Compensation Scheme (FSCS) is to pay compensation to 2,500 clients of discretionary fund manager Strand Capital, which became insolvent in 2017.

The special administrators of Strand Capital at Smith & Williamson LLP confirmed the formal distribution plan of clients’ custody assets had been approved by the High Court on Tuesday.

The ruling means that nearly all of the 2,500 clients holding investments with Strand will have their investments returned to them in full by the FSCS.

The costs relate to the fees of the administrators, their lawyers and others involved, such as custodians.

The news followed a recent interim distribution of client monies at a level of 65 pence in the £, with future distributions of client monies expected.

Adam Stephens, partner at Smith & Williamson LLP and one of the special administrators of Strand Capital, said: “We believe this distribution plan provides the best outcome for Strand's clients as we are now able to return almost all clients' assets to them in full.

“The approval of the distribution plan, with the support of the FSCS, represents the achievement of an important milestone in this insolvency.”

Clients were urged to get in touch with the special administrators of Strand to provide details of where their assets should be sent.

Strand slumped into administration in May 2017.