At the start of March this year, stockbrokers Beaufort Securities Limited (BSL) and its sister company Beaufort Asset Clearing Services Limited went into insolvency.
The Financial Conduct Authority, the UK’s financial watchdog, declared the company insolvent after a claim by the US Department of Justice that the company had been involved in a fraud and money laundering case.
The Financial Services Compensation Scheme (FSCS) have said they are aiming to reimburse around 2,700 of the individuals who invested with Beaufort Assets, the subsidiary of Beaufort Securities.
Letters were sent out in early April notifying clients of Beaufort Securities and Beaufort Asset that funding had been secured to ensure they would get their money back.
Individuals whose investments were worth less than £2,000 can expect to receive their compensation at some point this month (May). Individuals who had investments in excess of this amount are unlikely to see their money returned until at least September 2018.
However, recent reports suggest clients could lose as much as 40 percent of the value of their investments through liquidation costs in plans proposed by the administrators, PWC, who claim the stockbrokers have “very limited” resources left. Although government legislation allows administrators to deduct relevant costs from the client’s entitlement, PWC have said the majority of clients should recover their money in full in due course.
Individuals with investments valued in excess of £150,000 may face a loss in their payback due to the Financial Services Compensation Scheme’s compensation cap of £50,000 per investor.
Claims against Beaufort
It is estimated that there are around 700 claims currently against the company Beaufort Securities surrounding compensation for matters such as poor investment advice.
Any existing claims currently being considered by the Financial Ombudsman Service are expected to be transferred to the FSCS.
If you were a client with Beaufort Assets, or its subsidiary company Beaufort Securities, and received poor investment advice we help you secure compensation. Get in touch with our team of solicitors today.