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PwC lowers estimated cost for Beaufort Securities insolvency proceedings

PricewaterhouseCoopers, one of the administrators overseeing U.K.-based Beaufort Securities Ltd., revised its forecast for the cost of returning funds held by the troubled broker to clients by nearly half to £55 million from £100 million, the Financial Times reported May 24.

Russell Downs, a joint administrator and partner at the accountancy firm, told the newspaper that the revision reflects the company's plan to distribute the cash and assets to Beaufort's clients within two years instead of a worst-case scenario of four years, adding that PwC came up with the £100 million figure initially and has since made enough progress to cut the estimate.

Downs previously said the costs would cover PwC's fees, fees for legal advisers and fees for several Beaufort staff assisting in the process. He also noted that Beaufort-held portfolios include high-risk "exotic activities," the value of which was harder to pinpoint.

Beaufort and its Beaufort Asset Clearing Services Ltd. unit were placed into insolvency March 2 by the U.K. Financial Conduct Authority, following a review of their financial positions.