A discretionary fund manager has been declared insolvent after a move by the Financial Conduct Authority (FCA).
The FCA said it took this action against Beaufort Securities and Beaufort Asset Clearing Services following an assessment of their financial positions.
In a statement the FCA said: “The FCA considers it necessary for insolvency practitioners to take over the running of the firms in order to protect assets from dissipation and protect the customers of both firms.”
The FCA has also issued the firms with a series of requirements that need to be followed with immediate effect. These include the demand to cease all regulatory activity and retain all assets belonging to the firm or clients unless the regulator’s consent is given.
In the last two years, there have been 13 complaints to the Financial Ombudsman Service regarding Beaufort Securities and nine of these complaints were at least partially upheld.