A discretionary fund manager has been placed into insolvency after an application by the Financial Conduct Authority.
The FCA said it took this action against Beaufort Securities and Beaufort Asset Clearing Services following an assessment of their financial positions.
In a statement the FCA said: "The FCA also considers it necessary for insolvency practitioners to take over the running of the firms in order to protect assets from dissipation and protect the customers of both firms."
The FCA has also imposed requirements on the firms, with immediate effect, requiring them to cease all regulatory activity and not to dispose of any firm or client assets without the regulator's consent.
The regulator said the administrators, PwC, 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
