Hundreds of Welsh Beaufort clients get money and assets back, courtesy of FSCS and PwC
About 350 clients in Wales of the failed stockbroker Beaufort Securities Limited (BSL) have been reunited with their money and assets, thanks to collaborative work between the Financial Services Compensation Scheme (FSCS) and PricewaterhouseCoopers (PwC).
BSL was placed in administration and Beaufort Asset Clearing Services Limited (BACSL) was placed in Special Administration by the High Court following an application by the UK regulators in March 2018. This was shortly after the US Department of Justice brought criminal charges against BSL and a number of individuals for their alleged involvement in securities fraud and money laundering.
BACSL provided the clearing and custody services to BSL. The firms, which had a main office in central London and regional offices in Colwyn Bay and Bristol, acted as traditional stockbrokers servicing private investors, corporate clients and institutions.
PwC has reached an agreement with a nominated broker, AFH Private Wealth, for the transfer of client money and client assets of about 350 clients who were mostly previously customers of Beaufort’s Colwyn Bay office.
The customers will be able to begin accessing their money and assets from the morning of Monday 5 November onwards. Any remaining client assets and client money not transferred but that are still eligible for transfer will be moved to the relevant nominated broker in later tranches.
Mark Neale, FSCS’s Chief Executive, said: “By securing money and assets for a further 350 more Beaufort clients, we have taken another step towards ensuring that the vast majority of their clients can access their money and assets. This is a tribute to the skills of FSCS’s specialists and a testament to the continuing collaborative approach taken by FSCS and PwC to ensure that the majority of Beaufort clients are now back on track.”
In September, close collaboration between PwC and FSCS saw just over 12,000 Beaufort clients transferred to a new broker, The Share Centre, and a first tranche of cash and assets returned to Beaufort clients.
FSCS is protecting the vast majority of Beaufort’s 17,500 clients by compensating for any shortfall arising from the costs of returning cash and assets. This means those costs will not need to be taken from client assets and client money. FSCS is arranging for these costs to be met directly with PwC and the vast majority of individual Beaufort clients are not expected to suffer any financial loss.
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Notes for Editors
FSCS is the UK's statutory compensation scheme for customers of authorised financial services firms. It was set up by Government in 2001 and is funded by the financial services industry. FSCS protects deposits, investment business, home finance (mortgage) advice, general insurance, insurance broking and debt management. FSCS can pay for financial loss if a firm is unable, or likely to be unable, to pay claims against it. The following limits apply:
- Deposits: £85,000 per person per authorised deposit-taker (for claims against firms declared in default from 30 Jan. 2017). For more details visit our Deposit Limits
- Investments and home finance: £50,000 per person per firm (for claims against firms declared in default from 1 Jan. 2010). For more details visit our Investment Limits and Home Finance Limits
- General insurance advice and arranging claims: 90% of the claim is protected with no upper limit. Compulsory insurance is 100% (for business conducted on or after 14 Jan. 2005). For more details visit our Insurance Limits
- Debt management: £50,000 per person per firm (for claims against firms declared in default from 1 April 2018). For more details visit our Debt Management page
FSCS is an independent body, set up under the Financial Services and Markets Act 2000 (FSMA), and does not charge individual consumers for using its services.
Declaring a firm in default
Before FSCS can pay compensation it must be satisfied that a firm does not have sufficient assets to meet claims. It describes this as being ‘in default’. FSCS will declare a firm in default if:
- it has received at least one claim; and
- it is satisfied that the firm is unable (or likely to be unable) to pay claims against it.
FSCS is required to do this before it can pay compensation to eligible claimants. Declaring a firm in default allows consumers who believe they may have lost money as a result of their dealings with that firm to apply to FSCS.
Dealing with a Financial Conduct Authority (FCA) or Prudential Regulation Authority (PRA) authorised firm gives consumers access to the Financial Ombudsman Service (FOS) and FSCS. Consumers can check that the firm they are dealing with is authorised by using the FCA’s Financial Services Register found here: http://www.fca.org.uk/firms/systems-reporting/register
An ISDN line is available if you are interested in arranging a radio interview with FSCS’s CEO. Please get in touch with our public relations team email@example.com to arrange a suitable time and date.