Beaufort Securities Limited ("BSL") in Administration & Beaufort Asset Clearing Services Limited ("BACSL") - in Special Administration ("the Companies") - Distributions

This section contains a brief guide for clients explaining how the Distribution Plan will affect them and how costs will be worked out and shared across clients.

The administrators have also implemented processes to enable distributions to remaining clients, including the transfer of assets and money to clients’ own selected brokers, as well as further transfers to the nominated brokers and a liquidation process.

If you have any questions, please contact our Client Services Helpdesk by: 

  • Telephone on: 0800 063 9283 (UK) or +44 (0)20 7293 0227 (Internationally)
  • Email atclient.services@beaufortsecurities.com
  • Letter at: Beaufort Asset Clearing Services Limited (in Special Administration), 23 Austin Friars, London, EC2N 2QP


Distribution Plan

This section contains the administrators' distribution plan for the return of client assets (the “Distribution Plan”), an accompanying statement explaining its terms (the “Explanatory Statement”) and an important notice to clients. It was approved by the Creditors’ Committee on 13th July 2018 and approved by Mr. Justice Arnold at a hearing at 2pm on 26 July 2018, with one amendment. The amendment is to Clause 3.1 of the Distribution Plan and makes clear that the Administrators can continue to return Physically Held Certificates which they are holding for clients to those clients outside of the return processes in the Distribution Plan until 10 September 2018 (at which point they will be able to return any that they still hold under the Distribution Plan). The Court provided the sealed order approving the Distribution Plan on 27 July 2018 and therefore the Effective Date of the Distribution Plan is 27 July 2018.

Distribution Plan notice of approval

Guide to Distribution Plan

Distribution Plan Flowchart

Costs and Cost Allocation Paper

Explanatory Statement

Distribution Plan

Distribution plan - amended 27 July 2018  - amendments approved by the Creditors' Committee on 27 February 2019 

Distribution plan - amended 26 November 2018  - amendments approved by the Creditors' Committee on 27 February 2019

Distribution Plan – amendment approved by the Creditors’ Committee on 26 November 2018

Witness Statement

FAQs for Distribution Plan

FAQs for Updated Client Money and Client Asset Statements dated 17 August 2018

Distribution Term Sheet

Term Sheet document relating to the Distribution Plan, published 29 June 2018

Addendum

This Addendum sets out, for each client, which stock lines Beaufort’s books and records indicate that BACSL had undertaken to hold and in what quantity. This information was contained in the individual client asset statements that were sent to all clients in early May 2018. In addition, the Addendum states which stock lines are, on the basis of the work undertaken by the Administrators to date, currently believed to be subject to reconciliation shortfalls.

The Addendum should be read together with the terms of the Distribution Plan itself and is subject to those terms such that, for example, if any of the securities listed are Tainted Client Assets or Non-Returnable Assets (as defined in the Distribution Plan), there may be a delay in them being returned, if indeed they are able to be returned at all.   

The information contained in the Addendum is subject to various further caveats, namely that:

  • since it pre-dates the setting of the 8 June 2018 bar date, it does not reflect any amendments required to be made in order to reflect claims received from clients but not previously included in BACSL’s books and records;
  • it does not reflect post-administration corporate actions;
  • it does not reflect the fact that, in a small number of cases, the FSCS has already made compensation payments direct to clients and has therefore been subrogated to such clients’ rights in respect of client assets;
  • because it constitutes a snap shot as at 1 March 2018, the data does not reflect any trades (whether sales or purchases of securities) that may have been instructed prior to the commencement of the special administration, but settled since;
  • the reconciliation exercise being carried out by the Administrators in order to identify and quantify reconciliation shortfall is still ongoing.  Further reconciliation shortfalls not reflected in the Addendum may yet be identified; and
  • the data as to encumbrances (i.e. security interests to which assets may be subject, in respect of client indebtedness) does not reflect any payments that may have been made by clients, since the commencement of the special administration, in order to discharge such encumbrances.

For security and data protection reasons, the names of clients have been replaced in the addendum with anonymised unique identifiers.  Any client wishing to know its unique identifier for the purposes of inspecting and reviewing the Addendum should contact our Client Services Helpdesk (see above).

For all of the above reasons, however, the more authoritative and up-to-date source of information for clients, regarding the client assets that will in due course be returned to them, is the Client Assets Claim Statements that the Administrators intend to provide to clients in the course of August 2018, if the Distribution Plan is approved by the Court.

Addendum to the Distribution Plan, published 25 July 2018


Client's own selected broker process

A summary process for the distribution of your Client Assets and Client Money to your own selected broker can be found in the below link

Summary Process for Distribution of your Client Assets and Client Money to your Selected Brokers


Liquidation process

A summary process for the liquidation of your Client Assets can be found in the below link

Process for liquidation of assets

BACSL order execution policy


Client Asset Shortfalls

The table linked to below outlines the valuations of 25 Client Assets identified by the administrators as being affected by shortfalls in BACSL’s books and records as at 1 March 2018.

If you held any of the Client Assets listed in this document a shortfall in your holding will have been identified on your Client Asset Statement. You can use the valuation quoted below to calculate the compensation you have received in the form of cash if you are eligible for the Financial Services Compensation Scheme (FSCS).

Client Asset Shortfall Valuations


Abandonment of Assets/Cash

A number of Clients have indicated that they do not wish to pursue claims in respect of some or all of their assets still held by BACSL. If you wish to waive your rights as a Claimant to any of the assets held by BACSL on your behalf, please read the document below outlining what action you should take.

Abandonment of Assets/Cash

Defaulted Bonds

Following investigations, we have identified a list of companies with bonds in default which can be viewed via the below link:

Defaulted Bonds

Dissolved / Illiquid stocks and warrants

Following investigations, we have identified a list of stocks and warrants we believe to be either dissolved or illiquid which can be viewed via the below link:

Dissolved / Illiquid stocks and warrants

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