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FCA shuts down Beaufort

The Financial Conduct Authority has declared Beaufort Securities insolvent, leaving almost two dozen London-listed miners on the hunt for a new broker.
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Closed doors: Beaufort has confirmed it has ceased trading

Beaufort serves as broker to 22 AIM mining companies, according to the London Stock Exchange, including newly-listed Altus Strategies (LN:ALS), AfriTin Mining (LN:ATM) and Jangada Mines (LN:JAN) as well as Hummingbird Resources (LN:HUM) and explorers Kefi Minerals (LN:KEFI) and Savannah Resources (LN:SAV).

Three PwC consultants have been appointed as administrators by the High Court.

Karelian Diamonds (LN:KDR) said in a statement it would be looking for a new broker.

"Beaufort is the broker to the company pursuant to the AIM Rules for Companies," the miner said.

"As a result of the requirements imposed by the FCA, Beaufort will no longer be able to provide broking services to the company in accordance with the AIM rules."

Savannah must not have been warned by its Beaufort broker Jon Belliss as his details were included in an announcement released on Friday morning.

PwC said clients would have to patient as the insolvency process starts at Beaufort Securities and Beaufort Asset Clearing Services.

"Our key priority is to safeguard the firms' custody and client money holdings held for their clients," said administrator Nigel Rackham.

"Once these positions are under our control and we have secured important trading and client data, we can start planning for the return to clients.

"The appointment of administrators, following the firms' insolvency, will inevitably cause inconvenience and hardship to the firms' clients and we will be working with relevant authorities to minimise that."