Financial Conduct
Beaufort Securities and Beaufort Asset Clearing
RNS Number : 4726G
Financial Conduct Authority
02 March 2018

Beaufort Securities Limited (BSL) and Beaufort Asset Clearing Services Limited (BACSL) are placed into insolvency

Following an urgent application by the Financial Conduct Authority (FCA), the High Court has appointed Messrs Russell Downs, Douglas Nigel Rackham and Dan Yoram Schwarzmann of PricewaterhouseCoopers (PwC) as joint administrators of BSL and joint special administrators of BACSL.

The FCA took this action following an assessment of the financial positions of BSL and BACSL (the Firms) which led the FCA to believe that both Firms are insolvent. 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, using its own-initiative powers under the Financial Services and Markets Act 2000 (the Act), requiring the Firms to cease all regulatory activity and not to dispose of any firm or client assets without the FCA's consent.

The joint administrators / joint special administrators will contact all affected customers of the firms in due course. If customers of the Firms require more information about how they will be affected, they should contact PwC (contact details will be made available by PwC through the day).

Another Wolf outfit?

commervan, my apologises you are of course correct. I wonder which investors will take a hit and be left for the FSCS to pick up? My guess is that small investors will be the ones that will on the basis - they can claim from the FSCS even though it will take them time, and some will not even claim through lack of knowledge.

In truth small investors should be protected by the FSCS - who should then pick up the bill directly with the administrators.

I'm tied up in this mess in a small way. Told wont hear anything until April.

Claret Dragon, Hopefully, you did not leave them holding much cash, as its seems PwC fees will be taken from the cash pile.

I also had a very small amount of stock with them as I hold several accounts with different brokers in case of these sort of events or website issues with other on-line brokers occur. Due to the issues they were having when they set up the new website there were trading problems that flagged cash handling issues. Fortunately, I had withdrawn funds and only left a negligible cash balance with them.

I cannot see PcW being able to transfer any portfolios for some months, and I doubt they will be ready to do so in April.

Hold one stock with Beaufort. Only loose change lying around. Cant sell my holding as I have asked last week. April was the earliest date given, However the person I spoke to was vague. Doubt if they have any idea how long the process will last. Very frustrating.

i was with hoodless for many years the previous name of Beaufort..i rang them up once to sell my shares in ridge mining and my broker said " sorry mr ******* i cant sell them because they have been lent out..

Didnt know what he meant at the time but i do now...they were naked shorting ridge mining before ultimate takeover which happened

maestro, you could have forced the issue and not allowed them to brush you off with that excuse.

yeah i know but i was abit green at the time..should have informed the FSA straight away..think this practice is still rife and ascent resources is one being targeted now and ultimate takeover

Agreed maestro, this may well be one of the problems that PcW are having to deal with, hopefully the records have not been destroyed but I noticed they stated on their latest update that they were having to sort out "a number of open positions and transactions which need to be resolved and concluded. This may impact the total once a finial reconciliation takes place"

However, the position looks better than what was stated on 2nd March:
” It is clear given the better information now recovered that entitlements will be closer in magnitude, if not exceeding, the amounts identified above of £50m and £850m."

Wolf tactics maestro.

I also got Beaufort by default when HB turned to custard.

Wish I had changed at the time to alternative.

Lets see how long this one stretches out for.

Claret Dragon, Have you filled out and sent your claim form yet?

For those that have not the form can be found at the foot of the page that I have posted the link below.

https://www.pwc.co.uk/beaufort

Not filled out form yet.

Will send it off once back in the UK this weekend.

Thanks

Clocktower.

Clock, have you received a communication from pwc inviting you to complete this form? I ask because to me it looks more like a claim form to be completed by suppliers to beaufort who have not been paid for their services.

There is a note on the PWC statement to the effect that Beaufort clients should wait to be contacted.

Beaufort had a dealer in charge called Scott who often refused to buy or sell for clients
because no security was done. But there was never any answer on the phone lines for those who did the security so if you cannot sell online and nobody is answering the phones to do security and the dealers refused to do the security then you were basically fecked. The FCA should have shut this outfit down a long time ago. The simply stockbroking side of the business was fine until they merged with crooks Hoodless Brennan.

We have safeguarded the Firms’ IT and data systems as well as securing approximately £50million in segregated client money accounts and approximately £850million in client securities. We are pleased to be able to confirm that the monies and securities that we have secured are held appropriately in accordance with FCA requirements.

We are mindful that a continuing inability to access your portfolios will be a source of uncertainty and concern. We are doing everything we can to minimise the disruption that this process will cause. We do not anticipate any returns before mid-April at the earliest and many returns will likely take longer. We have had a number of meetings with the Financial Services Compensation Scheme ("FSCS"). The FSCS has declared the Firms to be in default under its rules and as a consequence compensation of up to £50,000 may be available to clients who are eligible under FSCS’s rules. We will provide further guidance in that regard when we are able. General guidance may be found on the FSCS website www.fscs.org.uk.

PcW have posted a updated info page:
https://www.pwc.co.uk/services/business-recovery/administrations/beaufort/beaufort-faqs.html

OK, this could be fun. Potential takeover at HMSO. Guess where my HMSO shares are.

Received update from this carve up.

More complicated than first thought.



Stratton Oakmont comes to mind.

Claret; I hope those who had cash or shares lodged with them get everything or close to everything back.