City Equities Ltd and/or Beaufort Securities Ltd

135

Comments

  • morty1961
    morty1961 Posts: 1 Newbie
    I too have lost around £67k from my Beaufort SIPPS portfolio but not thro CARDUUS or EASTBRIDGE investments. its just over 50% of my portfolio so big big loss :-(
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
    First Anniversary Name Dropper First Post
    I'd ignore a cold call or email from anyone. There are plenty of fish in the sea (even if Dolphins are mammals) and anyone who is impolite and crass enough to cold call doesn't deserve my business whoever they are.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • Gambler101
    Gambler101 Posts: 580 Forumite
    majicka wrote: »
    I know this is an old thread, but I thought I'd add my 2cents, as I work in the stockbroking/ investment management sector.

    City Equities and Beaufort Securities (which took over Hoodless Brennan (itself re-branded to HB Markets, presumably because of the reputation it had built up - google 'Hoodless Brennan cold calling' and you'll see what I mean)) are both what's referred to in the trade as 'spank shops'. They flog shares, their brokers are paid mostly commission; they are not in the business of building you a portfolio.

    Beaufort is FCA registered, and City Equities was FCA registered when it was in existence. To be clear, that does not mean they are/ were reputable firms. It should do, but it doesn't. I've even checked on the FCA register - one firm was setup by two guys who'd worked at a spank shop for a year at most (which was later shut down), and then they were allowed to start their own firm at the grand old of age of about 26, with no experience! It really does beggar belief.

    Beaufort since taking over Hoodless Brennan at first glance seems to have become more professional, but it still has the same people working there, who are probably still remunerated on the same terms. And if they're still cold calling or emailing people, well that says it all.

    The FCA and the FSA before it allowed some very unscrupulous firms to oprerate, cold calling clients, with very sharp sales practices (ironic when you consider how difficult they have made life for reputable firms). Often they only invested in AIM shares, and were driven by commission, often destroying little old ladies' share portfolios in the process. Total scumbags in almost anyone's book.

    Thankfully following the Retail Distribution Review, the number of these firms have dwindled, but they're still out there. Nowadays, they tend to focus on CFDs, or foreign exchange rather than AIM; some are totally unregulated and will try and flog you things like timber or commodities (often they don't own what they're purporting to sell).

    In short: never invest money with someone who has cold called you, or otherwise contacted you out of the blue - reputable firms don't do this in the UK. Sadly being FCA registered doesn't guarantee that a firm is reputable.

    This post should be a sticky !!
    The instructions on the box said 'Requires Windows 7 or better'. So I installed LINUX :D:D
  • frogg
    frogg Posts: 25 Forumite
    Well I've used them for XO for about 8 years and they changed to a new platform a week or so ago. Since then, I seem to have lost my cash on the account (about £1,600) and any discussions with them to sell my existing shares and transfer the cash to me (including the 'lost' cash) is met with agreement but nothing happens. I have started a complaint with the Ombudsman, but it is tricky to start as Beaufort aren't even accepting my request to open a complaint!

    Avoid this company!!! I hope I can get my money back - but I suspect I'm going to have to go through a legal process. Is anyone OK with their services left?
  • bluffer
    bluffer Posts: 528 Forumite
    First Anniversary First Post
    edited 4 March 2018 at 10:05PM
    NX123 wrote: »
    Can anyone confirm if Beaufort securities investments has been closed down by the FCA? I have been made aware that there DFM (Steve Sahota) has been suspended due misconduct. It is alleged he was investing pension funds via ADAM BENNETT (KPJ financial Solutions Ltd) for commissions in excess of 30%. Steve Sahota was alleged to be taking funds through his personal account.


    oh dear.

    how does this affect xo accounts, anyone know?

    https://www.pwc.co.uk/beaufort



    Beaufort Securities Limited ("BSL") in Administration & Beaufort Asset Clearing Services Limited ("BACSL") - in Special Administration ("the Firms")
    On 1 March 2018, the High Court appointed Russell Downs, Dan Yoram Schwarzmann and Douglas Nigel Rackham, each a qualified insolvency practitioner and of PricewaterhouseCoopers, joint administrators of Beaufort Securities Limited, pursuant to Paragraph 11(a) of Schedule B1 to the Insolvency Act 1986 and section 359 of the Financial Services and Markets Act 2000, and joint special administrators of Beaufort Asset Clearing Services Limited pursuant to Regulation 6(1)(e) of the Investment Bank Special Administration Regulations 2011.
    During the period for which the High Court Order is in force the affairs, business and property of the Firms shall be managed by the joint administrators in accordance with the Insolvency Act 1986.
    Both of the Firms were placed into insolvency following an urgent application by the Financial Conduct Authority (FCA). The FCA took this action following an assessment of the financial positions of BSL and BACSL (the Firms) which led the FCA to believe that both Firms are insolvent. The FCA also considers it necessary for administrators to take over the running of the Firms in order to protect assets from dissipation and protect UK consumers, including customers of both Firms, due to concerns that the Firms may be involved in financial crime. For further information please follow the links below:



    PwC Announcement
    The joint administrators / joint special administrators will contact all affected customers of the Firms in due course.
    If customers of the Firms require more information about how they will be affected, they should continue to monitor this website for further announcements or call the following numbers:
    UK: 08000639283
    International: +44 2072930227

    Contact details

    Address:
    Beaufort Securities Limited (in Administration)
    Beaufort Asset Clearing Services Limited (in Special Administration)
    63 St Mary Axe
    London
    EC3A 8AA
    www.pwc.co.uk/beaufort
    2023 wins - zilch, nada, big fat duck. quack quack,
  • frogg
    frogg Posts: 25 Forumite
    edited 6 March 2018 at 6:11PM
    Well any securities you hold in any account (trading, isa) *should* be safe, and the liquidator expects to recover about 85-90% of the cash.

    While most brokers set up nominee accounts to hold shares, and are ring-fenced from the company, there have been instances where loss has occurred. Just google nominee accounts safe for a read. I!!!8217;m not suggesting that BS have done anything to compromise the nominee accounts, but just be aware.

    I!!!8217;m lucky that since my last note above yours, I pulled everything out as I smelt a rat.
  • G_M
    G_M Posts: 51,977 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    edited 21 April 2018 at 2:36PM
    I've just received a letter from PWC advising me of Beaufort going into administration.

    I'd never heard of them, but gather they own (took over?) www.X-O.co.uk who I use for share dealing.

    I own shares in 3 companies but assume the money invested in those companies is safe (eg Rolls Royce)? There's about £1000 in cash which I guess might be lost.

    Is that right?

    edit: just logged in to X-O wwithout problem. Can see my shareholdings and cash account. No mention of accounts being frozen etc. Is X-O unconnected?
  • jamei305
    jamei305 Posts: 635 Forumite
    First Anniversary Name Dropper First Post
    They are related to the former online broker Hoodless Brennan, who were rather cheap and hence used to be recommended on here. However they ceased operations about 10 years ago. Nevertheless, former account holders may still receive emails about Beaufort's demise.
  • Reaper
    Reaper Posts: 7,280 Forumite
    Name Dropper First Anniversary First Post Photogenic
    G_M wrote: »
    I'd never heard of them, but gather they own (took over?) www.X-O.co.uk who I use for share dealing.
    No, I don't believe there is any connection between the two. X-O are owned by Jarvis Investment Management.
  • seacaitch
    seacaitch Posts: 272 Forumite
    First Anniversary First Post Combo Breaker
    Surprised this Beaufort Securities story hasn't attracted more coverage or discussion, considering the proposed haircuts for customers, the enormous £100m PWC fees, and the possible implications for "ringfenced" funds and nominee accounts in general across all firms:

    From the FT: PwC defends Beaufort Securities insolvency plan

    Search link to FT (click top result): https://www.google.co.uk/search?q=PwC+defends+Beaufort+Securities+insolvency+plan


    On Wednesday, Lord Lee of Trafford tabled a question in the House of Lords asking for the exact legal basis of charging Beaufort customers.

    Everyone is of the view including me, that client funds are ringfenced and protected, and no one can put their hands in and dip into them, Lord Lee told the Financial Times.

    That's the whole thrust of what the government has been trying to create to give protections to individual savers, he said.
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