Beaufort investors to get money back

PA

As much as 14 000 investors in the stock market meltdown firm Beaufort Securities must obtain a “substantial” amount of their money.

The official administrators, PwC, said that the firm’s clients should see between 85% and 90% of their money back.

However, it will take at least a month before any return.

Beaufort Securities has been put into administration last Friday, after the regulator declared it insolvent.

Shortly after the Financial Conduct Authority (FCA) has taken action, the regulatory agencies in the united States have said that they intend to bring criminal charges against the company.

The allegations concern a plan to manipulate the stock price of several small businesses.”No money”

PwC said that it had just 50 million pounds in cash in the accounts of clients of Beaufort, and 800 million pounds sterling invested in client assets, such as pensions and Individual Savings Accounts (Isa).

This money has been ring-fenced, so that it can be returned to investors.

“We do not anticipate a substantial return for customers, after costs, even if it may take some time to implement, and we do not see all returns that begin before mid-April, there are a number of challenges to overcome,” said Nigel Rackham, the spouse of the administrator.

“These include the completion of an assessment of the accuracy of the firm’s books and records, the development of new processes to move the stock of all the customers in an orderly and proper manner, and prepare cost estimates for these activities.”

PwC said that it would be limited by the fact that there was no money in the company’s own bank account.

It has also closed Beaufort offices in Bristol and Colwyn bay, and 90 staff redundant. The office in the City of London remains open for the time being.