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Beaufort Securities clients get their cash back

Beaufort Securities clients get their cash back

Another 3,000 clients of Beaufort Securities have been reunited with a large part of their money after compensation was paid by Financial Services Compensation Scheme (FSCS).

The Beaufort clients have been transferred to the broker The Share Centre and a tranche of cash and assets is being returned to them.

In August The Share Centre agreed to buy 15,000 customer accounts from Beaufort Securities and more than 12,000 were reunited with their money.

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Last week a further 350 Beaufort clients, who are mostly in Wales, were also reunited with their money through AFH Private Wealth after it bought the client book of Beaufort's Colwyn Bay office.

Mark Neale, chief executive of the FSCS, said: "Most Beaufort clients have now gained access to their money and assets, after months of hard work by FSCS and PWC. 

"Thanks to the continuing collaboration by both organisations, the majority of clients are now back on track."

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.

Today's (November 14) announcement means around 15,400 of Beaufort's clients have received most of their money and assets such as Isas and pensions.

The FSCS said the remaining 2,000 or so clients were affected by a variety of more complex issues, which meant they may have to wait a bit longer to be transferred.