Tuesday 16 October 2018

The Share Centre acquires 15,000 Beaufort Securities accounts

Beaufort Securities was declared insolvent by the Financial Conduct Authority in March.

Beaufort Securities was declared insolvent in March (PA)
Beaufort Securities was declared insolvent in March (PA)

By Helen Cahill, Press Association City Reporter

The Share Centre has acquired 15,000 customer accounts from the administrators of Beaufort Securities.

Broker Beaufort Securities was declared insolvent by the Financial Conduct Authority in March, with PwC appointed to handle the administration.

The stockbrokers provided services to investors and corporate institutions, with 14,000 clients investing in products ranging from ISAs to pensions.

Announcing its interim results on Wednesday, The Share Centre said it had reached a deal with PwC to acquire 15,000 accounts out of the administration, with the transfer of customers due to start in September.

The activity associated with the accounts is expected to benefit the company from the fourth quarter onwards.

The Share Centre, which is listed on the Alternative Investment Market, said the Beaufort customers concerned had been unable to access their accounts for several months.

Clients of collapsed Beaufort Securities have also been promised financial reprieve after a deal was struck to cover the costs of returning around £500 million in assets to customers.

PwC reached an agreement with Beaufort’s creditors’ committee and the Financial Services Compensation Scheme (FSCS) to cover 94% of the costs for returning assets to approximately 17,500 retail and corporate clients.

The Share Centre did not disclose the nature of any commercial arrangement reached with PwC for the transfer of the accounts.

Richard Stone, chief executive of The Share Centre, said: “We are especially pleased to welcome, in a few weeks’ time, customers of Beaufort Securities, who have endured a very difficult period since the collapse of the business.

“It is pleasing to have been selected to provide these customers with a secure home and service for their investments and we look forward to building our relationship with them, and rebuilding their trust in our industry, other the months ahead.”

Press Association

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