FBI investigations delayed close of failed Beaufort Securities

£800m client money stuck

Hannah Godfrey
clock • 1 min read

The Financial Conduct Authority (FCA) delayed shutting down failed discretionary fund manager Beaufort Securities to allow the FBI to carry out an undercover operation, according to reports.

The financial watchdog allowed Beaufort to continue carrying out regulated activity beyond December to give US prosecutors the time needed to gather evidence to bring charges against the firm, the Times said. The firm was eventually placed into insolvency on 2 March following an urgent application by the FCA to the High Court. The regulator said it carried out an assessment of the financial positions of both Beaufort Securities and Beaufort Asset Clearing Services, which led it to believe both firms were insolvent. Last Friday, the US Department of Justice unsealed an indictment that ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Fairstone revenue rises 21% as firm targets £40bn in assets by 2030

Fairstone revenue rises 21% as firm targets £40bn in assets by 2030

Group reaches 100th DBO deal and expands digital advice service Mineral

Sahar Nazir
clock 14 October 2025 • 1 min read
Investing in adviser qualifications 'a win-win' for firms and clients

Investing in adviser qualifications 'a win-win' for firms and clients

Upskilling existing advisers can cut turnover and help attract business, Continuum says

Sahar Nazir
clock 14 October 2025 • 2 min read
Startup Clove eyes launch in bid to 'lower the advice threshold to £10k'

Startup Clove eyes launch in bid to 'lower the advice threshold to £10k'

To start with five to ten advisers with plans to scale rapidly, CEO says

Sahar Nazir
clock 14 October 2025 • 3 min read