Clients of Jarvis Investment Management are being told not to submit compensation claims yet while the scheme that protects customers of failed financial firms examines how the company’s money and investments can be returned or transferred. The update, dated 16 October, is the first clear public indication of what the next stage will involve after the firm entered special administration.
The High Court placed the FCA-authorised firm into the court-supervised process on 14 October. Adam Stephens and Philip Hemming of S&W Partners were appointed as joint special administrators. Their task is not simply to deal with the company’s debts: it includes identifying client money and custody assets, establishing each client’s entitlement and finding a practical route to return them.
No claims process has opened
The Financial Services Compensation Scheme says it is working with the administrators and the Financial Conduct Authority to understand the position. Its immediate priority is to determine whether it can meet costs connected with returning or moving client money and custody assets for eligible claimants.
That is an assessment, not a decision that compensation will be paid. The scheme says no decision has been made on protection or on how assets and money will be returned, and it is not currently accepting claims against Jarvis. Customers have been told that they do not need to contact the scheme or lodge a claim at this stage; the administrators will contact people directly if information or action is needed.
The distinction matters. A special administration is not, by itself, confirmation that client assets have disappeared. The administrators currently understand that there was no shortfall in client assets on 14 October, but say that cannot be confirmed until reconciliation is complete. Clients should therefore treat that as a provisional position rather than a guarantee about every holding or cash balance.
Why access is restricted
Client money is now being treated as a single pool under the rules that apply when an investment firm enters special administration. Administrators must reconcile that pool and the custody assets against individual client records before they can establish what is available and who is entitled to it. During that work, active clients cannot access, withdraw, sell or transfer their assets, and the client portal is unavailable.
The administrators say their preferred route is a transfer of clients and transferable assets to one FCA-regulated broker. They describe that as quicker and less costly than making separate returns to each client. Discussions with a preferred broker are at an advanced stage, although its identity has not been disclosed and no transfer agreement has been completed. Due diligence and terms were expected to be addressed within eight weeks of the appointment, but the administrators say the wider reconciliation and transfer process may take months and have not given an exact completion date.
Clients are not expected to pay a transfer fee if that route goes ahead. They should receive a portfolio valuation and a statement showing their position at the date of administration, including whether an amount is classified as client money or a custody asset. The administrators also intend to issue formal proposals to clients and creditors by 9 December.
Who may be affected
Jarvis provided execution-only stockbroking, ISA and custody services directly to retail customers and to professional firms using its back-office services. Most of its direct retail book was moved to another investment platform during 2025 and those transferred customers are not affected by this administration. People who used a professional intermediary may still hear from the administrators because the underlying custody or execution service was provided by Jarvis.
There is a separate issue for people who were pursuing redress from the company before the administration. That programme has stopped. The administrators say a person whose claim was not submitted before the administration may still qualify for redress, but any claim would be unsecured against the company. They are discussing with the compensation scheme whether unpaid redress could qualify for protection.
For now, the useful action is to wait for direct communication, keep account records and be cautious about unsolicited approaches. The regulator and administrators have both warned that a failure process can attract fraudsters. No client should send money to a third party to secure the release or transfer of assets; a genuine request for information can be checked through the official contact details already provided to clients.
