More than 16,100 clients of failed firm Beaufort Asset Clearing Services have now been compensated by the Financial Services Compensation Scheme.
In a statement today (January 29) the scheme stated 754 more clients have been transferred to The Share Centre and were able to access a tranche of cash and assets returned to them from yesterday (January 28).
Any remaining client assets and client money not transferred to The Share Centre in this tranche but that are still eligible for transfer will be moved to relevant nominated brokers in later tranches, the FSCS stated.
Beaufort Asset Clearing Services Limited was placed in administration by UK regulators in March 2018 shortly after the US Department of Justice brought criminal charges against Beaufort Securities Limited for its alleged involvement in securities fraud and money laundering.
Beaufort Asset Clearing Services Limited provided the clearing and custody services to Beaufort Securities Limited.
The FSCS has estimated the cost to FSCS levy payers of the Beaufort default would be about £50m or less, which would be spread out over more than one financial year.
Mark Neale, FSCS’s chief executive, said: "Most Beaufort clients have now gained access to their money and assets, after months of hard work by FSCS and PwC.
"This tremendous achievement is thanks to the continuing collaborative approach by both organisations to ensure that most clients are now back on track."
In total, more than 16,100 of Beaufort's 17,500 clients have now received most of their money and assets such as Isas and pensions, equating to 92 per cent of clients.
The remaining clients were affected by a variety of more complex issues around foreign assets that were causing delays, the FSCS stated.
The FSCS protects Beaufort’s clients by compensating for any shortfall arising from the cost of returning cash and assets so those costs do not need to be taken from the assets.
In September, about 12,000 Beaufort clients were transferred to The Share Centre, where they were able to access their cash and assets.
In November a further 3,350 claims were processed – 3,000 clients transferred to The Share Centre and 350 via AFH Private Wealth.
The FSCS stated it would arrange for the cost to be met directly with PwC.
A spokesman for the compensation scheme added the vast majority of individual Beaufort clients were not expected to suffer any loss.
carmen.reichman@ft.com
