The watchdog said in a statement that it had made an urgent application to the High Court after its own assessment of the two firms led it to believe that both are insolvent.
Administrators appointed
As a result, the court has appointed several individuals from Pricewaterhousecoopers to act as administrators.
Russell Downs, Nigel Rackham and Dan Yoram Schwarzmann have been instructed to take over the running of the firms to protect assets from being squandered and protect customers.
A statement on the firm’s website confirmed the action.
The FCA used its powers under the Financial Services and Markets Act 2000 to ensure both firms cease all regulatory activity and not to dispose of any firm or client assets without its consent.
Department of Justice
In a statmenet, the FCA said it was assisting the US department of Justice (DOJ) in its investigation into Beaufort Securities involvement in securities fraud related to stock of various US publicly-traded companies and international money laundering associated with that conduct.
The DOJ unsealed an indictment yesterday in which Beaufort Securities, in addition to other companies and individuals, have been charged with securities fraud and money laundering violations.
It added the administrators will contact all affected customers of the firms in due course.
Restrictions
In December 2016, the FCA placed special restrictions on Beaufort Asset Clearing Services, preventing it from accepting new monies or assets.
Beaufort Securities began life as a stockbroker almost 25 years ago. Over the last two decades it has established itself as an independent private client investment business providing online share dealing and advisory stockbroking, as well as corporate broking, corporate finance and dealing desk services to companies.
