Former clients of the collapsed discretionary fund manager, Beaufort Securities, have been compensated.
The news comes after The Share Centre agreed to buy 15,000 client accounts from the failed business in August 2018. The Share Centre serves 300,000 clients with over £5bn of assets.
After the bulk of client accounts were bought, in September more than 12,000 Beaufort Securities clients transferred to The Share Centre where they were able to access their cash and assets.
Beaufort Securities’s demise
Beaufort was placed into administration by UK regulators just hours before the US Justice Department of Justice brought criminal charges against it in March 2018 for fraud and money laundering.
The allegations included involvement in “pump-and-dump” style securities. Beaufort Securities was allegedly key to an operation spanning from the Caribbean to the Mayfair art world. This included money laundering in relation to the sale of a Picasso painting worth £6.7m.
A former Beaufort manager pleaded guilty in the US to money laundering.
FSCS compensates Beaufort clients
The Financial Services Compensation Scheme (FSCS) is a statutory deposit insurance and investor compensation scheme. It can compensate clients if a financial firm is unable to. It has often been described as a “lifeboat” fund.
The scheme has stated it expects the total cost of the Beaufort scandal to be in the region of £50m. This will be spread over more than one financial year.
FSCS chief executive Mark Neale stated:
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.
The FSCS also mentioned that a further 2,000 Beaufort clients were affected by a plethora of other complex issues. This has meant they have had to wait a little longer to be transferred, but that they are working diligently to get all issues sorted.
How can Smooth Law Commercial help?
At Smooth Commercial Law, our team of experts have extensive experience in dealing with a whole manner of claims that arise from negligent and/or unsuitable financial advice. We are dealing with many complex cases in relation to Beaufort Securities and have managed to secure compensation from FSCS for many of our clients.
Should you have a claim, we can deal with your case and look to recover compensation for not just your loss of investment but also any adverse tax liabilities that you may now be facing as well.
You can contact our experienced team by calling the number at the top of this website or by emailing info@smooth-commercial-law.co.uk.