The Financial Services Compensation Scheme is working with the administrator of Beaufort Securities.
On Friday (2 March) the discretionary fund manager was placed into insolvency after an application by the Financial Conduct Authority.
Beaufort Securities, as well as Beaufort Asset Clearing Services, are unable to execute any new business or act on any instructions from clients.
In a statement, the FSCS said: "The FSCS is working with PricewaterhouseCoopers (PwC), who have been appointed joint administrators of BSL and special administrators of BACSL, to understand what this might mean for these firms' customers.
"We will work as quickly as we can to provide some certainty for customers, and will provide further updates on our website as more information becomes available."
Neither company has yet been declared in default by the FSCS.
Announcing the insolvency of both companies on Friday (2 March), the FCA said it applied for this course of action to protect assets from dissipation and protect the customers of both firms.
The administrators, PWC, have said they will contact all affected customers of the firms "in due course".
Over the past two years Beaufort Securities has been the subject of 13 complaints to the Financial Ombudsman Service, with nine of these being upheld, at least in part.
Last year the FCA imposed a string of restrictions on Beaufort Securities, which meant the company could not hold or receive client money or assets.
It was also banned from engaging Beaufort Asset Clearing Services as a third party administrator or provider of outsourced services.
The FCA had previously restricted its DFM service.
damian.fantato@ft.com
