20th April 2018
The FSCS has continued to work closely with the special administrators of BACSL and support the process which will enable the return of client money and client assets as soon and as practically possible. For the latest full update of the special administrators’ current position and future plans please see https://www.pwc.co.uk/business-recovery/administrations/beaufort/letter-to-all-clients-of-bsl-and-bacsl-dated-120418.pdf
The special administrators confirm the return of client money and client assets held by BACSL will be subject to a distribution plan which is being developed as a matter of urgency. A realistic timeframe for the return of the majority of client money and client assets will be September 2018 at the earliest. However, the FSCS aims to compensate circa 2,700 BACSL clients who held client money only, each of whose claim is less than £2,000 in value in full, during May 2018. This will be paid without the need for claimants to submit an application form. These clients will have no further claim against BACSL. As stated in the special administrators’ update, notification will be sent to qualifying clients separately. This notification will include details of the cash sum to be returned along with the limited bank details (if any) and affected clients will have an opportunity to reject the distribution or notify BACSL of any amendment.
For all remaining clients, we will continue to cooperate with the special administrators to facilitate the return to clients of the balance of client money and client assets held by BACSL.
Additionally, clients of BSL are reminded if they believe they have a claim, for example in relation to negligent advice, they can submit their claim via the FSCS online portal at www.fscs.org.uk/your-claim/ with any compensation being capped at £50,000 per investor. This is separate from any claim the client may have in relation to a shortfall in client money or client assets that were held by BACSL, where there is a separate £50,000 compensation cap per investor. For clients who had already made a claim against BSL to the Financial Ombudsman Service (“FOS”), we have already made arrangements for these to be transferred direct to the FSCS, once you have provided your authority to the FOS.
A further update will be made in May 2018.