Investors in collapsed £900 million stockbroker and discretionary fund manager (DFM) Beaufort Securities can expect to get 80-90% of their investments back, our sister publication New Model Adviser® has learned.

The wealth firm, which was facing 600 claims at the Financial Ombudsman Service (FOS), has also now been declared in default by the Financial Services Compensation Scheme (FSCS).

Beaufort Securities and its subsidiary Beaufort Asset Clearing Services were placed in administration and special administration on 1 March following an ‘urgent application by the Financial Conduct Authority (FCA).’

The FCA’s application came hours after the United States Department of Justice (DOJ) published an indictment in which Beaufort Securities and other companies and individuals were charged in relation to 'securities fraud and money laundering violations’.

The administrators PwC has now published a letter to the 14,000 clients which said since its appointment it has secured approximately £50 million in segregated client money accounts and approximately £850 million in client securities’.

‘We are pleased to be able to confirm that the monies and securities that we have secured are held appropriately in accordance with FCA requirements,’ the letter from PwC said.

New Model Adviser® understands clients of the firm can expect to get between 80-90% of the value of their investment back. The majority of the client assets the firm held were through its stockbroking business with clients holding shares in around 47 small-cap companies which ranged from a scooter manufacturer to mining firms.

PwC said it does not expect any client returns to be handed back before mid-April and warned some will take longer.

The full New Model Adviser® can found here