Most of the members on this board might have heard about the Beaufort securities collapse in which the administrators PWC wanted to raid the shares / money of clients in order to recoup fees for administration. This has happened in the past with previous broker insolvencies such as Hartmann Capital, Fyshe Horton and Finney etc
This is legal and possible because of a certain unknown Rule 135 of the Special Administration Regime that allows administrators to use client shares / assets to fund the administration on the collapse of a stock broker or wealth management firm.
Shares / cash within ISAs, SIPPs and trading accounts are marketed as ring-fenced, yet this rule 'breaks' that ring-fence and creates a conflict of interest between returning assets to clients in a timely fashion and the administrators' corporate motivation to maximise fee income. This rule gives administrators an open cheque book as PWC proved when they came up with a bill of £100m to return shares / money to Beaufort's clients.
Would appreciate it if everybody would sign this petition and ask others to do the same. Thanks in advance,
https://petition.parliament.uk/petitions/222801
This is legal and possible because of a certain unknown Rule 135 of the Special Administration Regime that allows administrators to use client shares / assets to fund the administration on the collapse of a stock broker or wealth management firm.
Shares / cash within ISAs, SIPPs and trading accounts are marketed as ring-fenced, yet this rule 'breaks' that ring-fence and creates a conflict of interest between returning assets to clients in a timely fashion and the administrators' corporate motivation to maximise fee income. This rule gives administrators an open cheque book as PWC proved when they came up with a bill of £100m to return shares / money to Beaufort's clients.
Would appreciate it if everybody would sign this petition and ask others to do the same. Thanks in advance,
https://petition.parliament.uk/petitions/222801
