Beaufort Securities clients’ losses may exceed compensation limits

Some clients of Beaufort Securities have received news of a potential shortfall between their losses through the firm, and what the FSCS can pay out.

PwC had already written to around 14,000 clients of insolvent Beaufort Securities and Beaufort Asset Clearing to say they had got their hands on about £50million in ‘segregated client money accounts’ and around £850m in client securities.

But that figure has now been revised to around £500 million because of ‘highly illiquid’ and ‘potentially nil value positions’, meaning that some of the investments within Beaufort portfolios may be high-risk and potentially worthless.

PwC added that around 700 clients who had more than £150,000 with Beaufort ‘may experience a loss […] in excess of the FSCS £50,000 compensation limit’.

£100m over 4 years

Despite the potential woes, PwC is proposing to take £100m over the next 4 years for winding down Beaufort Securities.

The £100m bill proposed by Beaufort Securities administrators, PwC, has been challenged by a shareholder action group after it was revealed the valuations of client securities dropped.

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