The Financial Services Compensation Scheme is processing around 1,400 negligence claims against collapsed discretionary fund manager Beaufort Securities, it has confirmed.
The lifeboat fund tells Money Marketing that decisions on the claims will start to be finalised at the beginning of May.
Beaufort Securities became the target of both FBI investigations in the US and FCA sanctions in the UK early last year.
It was confirmed around 2,000 investors were still waiting for refunds in November.
The FSCS says: “Following the return of client assets and cash to 16,000 former clients of Beaufort Asset Clearing Services Ltd [we] are now dealing with approximately 1,400 negligence claims against Beaufort Securities.
“The FSCS is working closely with PwC to ensure that all relevant customer files and documentation can be shared to allow the assessment of these claims and decisions will start to flow within the coming weeks.”
The FBI alleges Beaufort “engaged in an elaborate multi-year scheme to defraud the investing public of millions of dollars through deceit and manipulative stock trading, and then worked to launder the fraudulent proceeds through off-shore bank accounts and the art world”.
The first investors to be compensated were those with claims under £2,000 last April.
As the FSCS finalises investor compensation, the FCA is expecting to be probed over its knowledge of the DFM’s collapse.
Commissioner Anthony Townsend called for the disclosure of the watchdog’s files to carry out further investigation this year.