View more on these topics

FSCS compensates thousands of clients from collapsed DFM

recession noiseThe Financial Services Compensation Scheme has compensated thousands of former Beaufort clients five months after the discretionary fund manager’s collapse, in another round of repayments.

Last weekend, 12,000 of Beaufort’s ex-clients were moved across to The Share Centre as their new broker.

A first tranche of cash and assets was also returned to clients. Remaining eligible clients’ cash and assets will be transferred to a nominated broker at a later date.

DFM placed into insolvency after FCA investigation

This is as a result of cooperation between FSCS and Beaufort’s special administrators PricewaterhouseCoopers, which was appointed as joint administrators of Beaufort Securities Limited and joint special administrators of Beaufort Asset Clearing Services Limited in March.

The FSCS said in April, that it would compensate 2,700 ex-Beaufort clients, whose claims did not exceed £2,000 without having to submit an application form.

This followed criminal charges against BSL and several individuals for their alleged involvement in securities fraud and money laundering bought by the US Department of Justice.

The FSCS says the cost of transferring money will be met by PWC, so the vast majority of Beaufort’s 17,500 clients are not expected to suffer any loss.

FSCS chief executive Mark Neale says: “I am very proud of how FSCS has helped ensure that the majority of Beaufort clients are now back on track.

“This is a tribute to the skills of FSCS’s specialists and a testament to the collaborative approach taken by the FSCS and PwC.”

The FSCS expects the cost to its levy payers of the Beaufort default to be around £50m, spread over more than one financial year.

Recommended

paperclips
5

Advisers waste five hours a week on menial tasks

Financial advisers waste almost five hours a week doing menial tasks, according to a study by adviser tech platform Advicefront. With an average hourly wage of £46.38, one hour in eight is spent on unnecessary tasks and costs advisers £220 per week in wasted time. The survey asked advisers how much time they spend weekly on […]

2

Standard Life Aberdeen begins share buyback after Phoenix deal

Standard Life Aberdeen has begun buying back shares from investors after selling its life arm to Phoenix. According to a stock exchange announcement this morning, SLA has purchased nearly 770,000 ordinary shares from Merrill Lynch International at an average price of 318p a share, costing SLA around £245m. The announcement adds that SLA intends to […]

FCA to hold DB transfer workshops from October

The FCA will hold a series of defined benefit transfer workshops for regulated advisers across the UK from October to December. The workshops will reiterate the regulator’s expectations when transacting this type of business and highlight the key points that firms should consider when operating in the market. Particular areas such as fact-finding, the balancing […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. What is the point of having regulated investments and unregulated investments, if you are just going to pay out on all

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com