View more on these topics

FSCS to pay back 2,700 clients of collapsed DFM Beaufort

FSCS Interior 480The Financial Services Compensation Scheme will automatically compensate hundreds of clients of a collapsed discretionary fund manager, but other investors will have to wait another five months to get their money back.

London-based Beaufort Securities has been investigated by both the FCA and US authorities.

An indictment from the US Department of Justice alleges that Beaufort recommended clients invest in art as part of money laundering, as well as attempting to manipulate stock prices.

Beaufort was placed into insolvency at the beginning of March after a successful application from the FCA to freeze the firm’s assets.

In an update published on its website today, the FSCS says 2,700 clients with claims of less than £2,000 will be compensated in full without having to submit an application form.

The compensation should be returned next month.

However, the majority of money will be returned to other investors in September at the earliest.

A distribution plan is being made with the administrators “as a matter of urgency”, the FSCS says.

The lifeboat fund has also reminded clients that the limit on claims for negligent advice is capped at £50,000, separated from another £50,000 to compensate any shortfall in assets held by Beaufort.

The FSCS will issue another update next month.



More investors follow Royal London into Metro Bank rebellion

Investment adviser Glass Lewis has joined Royal London in opposing the re-election of Metro Bank chairman Vernon Hill. Metro Bank is in the midst of a shareholder rebellion following findings that £4.6m in fees for architectural, banking and marketing services were paid to architect InterArch, run by Hill’s wife, Shirley. Royal London Asset Management holds […]


The march to independence: Will more big players ditch the restricted brand?

As a number of sizeable restricted businesses ditch the label in favour of independence, advisers are questioning whether more firms will make the move back to whole of market. While many of the largest firms in the market still offer restricted advice, the majority of smaller firms continue to opt for independent status post-RDR. The […]


FSCS default list published as British Steel IFA and ‘fraudulent’ DFM in spotlight

The Financial Services Compensation Scheme has released the full list of firms it declared in default in March, including an advice firm facing allegations of unsuitable British Steel pension transfers and a discretionary fund manager being investigated by US authorities. Active Wealth and Beaufort Securities are two of 11 financial firms on the FSCS’ list. […]

The times they are a-changin’

After joining Artemis last year, Cormac Weldon launched the Artemis US Equity, US Select and US Smaller Companies funds. A lot has happened in the US economy since — including a period of unexpectedly weak growth in the first quarter of this year. US stocks, however, have produced positive returns and all three funds are comfortably […]


News and expert analysis straight to your inbox

Sign up


There are 4 comments at the moment, we would love to hear your opinion too.

  1. This again proves the need to have DFM’s in a separate category from small advisory firms. Why on earth should we be expected to fund a firm that were force into insolvency by having been found guilty of committing criminal activities. This is now getting beyond a joke

  2. I agree with David. DFMs should be simply the fund managers with the client assets ringfenced as is the case with unit trusts and OEICs for example, if the manager goes bust then there is no impact on the client.

    This is entirely as a result of crime, those responsible should be held to account and assets seized, not simply dump the cost onto the FSCS and walk away. Give me five minutes in a locked room with these people.

  3. But DFMs and IFAs are so close in practical and regulatory terms. they have the same basic suitability rule for each transaction – COBS 9.2.1 R.

    The only difference between a dodgy IFA and a dodgy DFM is that the latter doesn’t need a sucker’s signature agreeing to each separate hideous mis-sale.

  4. […] dit le FSCS a réussi à offrir une compensation automatique à de nombreux clients cette […]

Leave a comment