FSCS has continued to work with the Joint Special Administrator (PricewaterhouseCoopers/PwC) and creditors committee, and good progress has been made.
We now expect nearly all of the firm's individual customers will be protected by FSCS so that assets and cash can be returned without any loss. FSCS expects to meet the shortfall in assets and cash arising from PwC's costs incurred in the exercise, and to do so directly with PwC.
FSCS also expects that a large percentage of those clients who are invested through corporate clients will also be protected by FSCS.
That process is expected to begin from September 2018. We are working with PwC to make sure the return of assets and cash is done in the most efficient and streamlined way, as to minimise inconvenience to customers.
We will continue to update this page with the latest developments.
Beaufort Asset Clearing Services Limited was placed in Special Administration by UK regulators in March 2018. This was shortly after the US Department of Justice brought criminal charges against the company for its alleged involvement in securities fraud and money laundering.
As a client making investments with Beaufort all client correspondence will have been branded as Beaufort Securities Limited. Beaufort Asset Clearing Services Limited provide the clearing and custody services to Beaufort Securities Limited. All client money and assets were therefore held with Beaufort Asset Clearing Services Limited.
There are approximately 17,000 retail clients and approximately 500 corporate clients in Beaufort Asset Clearing Services Limited.
The creditors committee has agreed the basis for distributing the costs of the administration of Beaufort Asset Clearing Services Limited. The result of that means we expect the vast majority of these costs will be covered by FSCS compensation. This means we expect the vast majority of those customers affected will not lose any money as a result of the firm entering administration.
The return of funds will be dealt with under Beaufort Asset Clearing Services Limited but if you think you have further losses through your dealings with Beaufort Securities Limited you can make a claim to FSCS using our online claims service.
As this would be a claim against a separately authorised firm, a further £50,000 limit of FSCS compensation would apply.
FSCS is working with PwC to determine whether the underlying clients of these companies will be covered by FSCS.
FSCS does not charge customers for using its service. If you do appoint a Claims Management Company (CMC), solicitor or other representative to make a claim to FSCS on your behalf, you may need to deduct any fees from compensation you may be awarded, and will need to make your own arrangements to pay those fees.
FSCS protects a range of financial products including, deposits (current & savings accounts), investments, pensions, endowments, PPI, debt management and home finance. Find out more about the products FSCS covers.