Troubled broker Beaufort Securities declared insolvent by FCA
The stockbrokers provide services to investors and corporate institutions.
The UK’s financial watchdog has brought administrators in to Beaufort Securities after declaring the troubled city broker insolvent.
The Financial Conduct Authority (FCA) said the decision was made about the group and its sister company Beaufort Asset Clearing Services following an assessment of their financial positions.
The stockbrokers provide services to investors and corporate institutions, with 14,000 clients investing in products ranging from ISAs to pensions.
About 100 staff are employed across the company’s headquarters at St Mary Axe in the City of London and at regional offices in Bristol and Colwyn Bay.
Nigel Rackham, PwC joint administrator, said: “The appointment of administrators has been rapid.
“Our key priority is to safeguard the firms’ custody and client money holdings held for their clients.
“Once these positions are under our control and we have secured important trading and client data, we can start planning for the return to clients.
“However, this is likely to take some time.
“The appointment of administrators, following the firms’ insolvency, will inevitably cause inconvenience and hardship to the firms’ clients and we will be working with relevant authorities to minimise that.”