£800m of assets frozen at Beaufort Securities by the administrators

● Financial Conduct Authority also liaising with US Department of Justice

The collapse of Beaufort Securities (BSL) has sparked the loss of 80 jobs and caused nearly £800 million of client assets to be frozen, it emerged yesterday.

Administrators PWC, in an update following the firm going into administration on Friday, said they had “unfor‑ tunately” had to reduce overall staff numbers at the business from 120 to 40 and closed offic‑ es in Bristol and Colwyn Bay as it tackles the group’s demise.

The Financial Conduct Authority (FCA) brought in the professional services and accountancy giant last week when Beaufort Securities and sister firm Beaufort Asset Clearing Services (BACSL) were both placed in insolven‑ cy following a financial assess‑ ment by the regulator.

The FCA is also helping the US Department of Justice with an investigation into Beaufort Securities over allegations that the group was involved in a securities fraud and money laundering scheme.

Nigel Rackham, joint admin‑ istrator of BSL and joint special administrator of BAC‑ SL, said PWC was dealing with a “very significant and compli‑ cated insolvency”, which could see many months pass before returns were made to clients.

Rackham said: “Since our appointment, the priority has been safeguarding the key client data and critical systems used to run the firms’ business as well as clients’ cash and assets.

“We have now identified and ringfenced £50 million in segregated client money accounts alongside freezing close to £800m in client assets.

“In respect of the client assets, thereareanumberofopenposi‑ tions and transactions which need to be resolved and con‑ cluded. This may impact the total once a final reconciliation takes place.”

The stockbrokers, which had a head office at St Mary Axe in the City of London, provid‑ ed services to investors and corporate institutions, with 14,000 clients investing in products ranging from ISAS to pensions.

While PWC does not expect any client returns before the middle of April, it is pencilling in a “substantial return” after costs.

Rackham added: “These include carrying out an assessment of the accuracy of the firms’ books and records, devising new processes to move the holdings of all cli‑ ents in an orderly and appro‑ priate way, and preparing cost estimates for these activities.”

The joint administrators said they had conducted a prelimi‑ nary meeting with the Finan‑ cial Services Compensation Scheme, focusing on mini‑ mising disruption and losses to clients.