The 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.
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.