16th February 2005
1. I am an investor in the Eurolife Secured Bond ISA and have been sent a letter by Nvesta Plc and a Restructuring Proposal by Eurolife Capital Funding Plc (ECF). Should I vote to accept the proposals?
FSCS is unable to make a recommendation on how you should vote. If you are unsure about what you should do, you should consider taking independent professional advice.
More info on the Eurolife Secured Bond ISA is available on the FSA's website, which you may find useful.
2. If ECF and/or EAG become insolvent, will I be able to claim compensation from FSCS?
FSCS is the UK's statutory fund of last resort for customers of authorised financial services firms. Firms are authorised to trade in the financial services sector by the Financial Services Authority (FSA), the UK's independent watchdog set up to regulate the financial services industry and protect consumers. If a firm is authorised you have access to the Financial Ombudsman Service and to FSCS.
ECF and EAG are not authorised by the FSA. That means that you will not be able to make a claim to FSCS simply because ECF or EAG become insolvent. However, FSCS can consider claims against authorised firms that are unable to pay claims against them. (See Question 5). If you were sold the Eurolife Secured Bond ISA by an authorised firm, and you wish to make a complaint, you should contact the firm direct.
3. How do I know if the firm I dealt with is authorised by the FSA?
You can find out whether a firm is authorised by using the FSA's Firm Check Service on its consumer website. You can also find out about the status of a firm by telephoning the FSA's Consumer Helpline on 0845 606 1234. They will be able to tell you if the firm is still authorised to trade and how to get in touch with them. If the firm is no longer trading, and is unable to pay claims against it, you can contact FSCS.
4. I was sold the Eurolife Secured Bond ISA by an authorised firm and wish to make a complaint. What should I do?
If you have any questions about the Eurolife Secured Bond ISA please contact the firm that sold this to you. Their contact details should be on materials they will have sent to you. If you are having trouble contacting the firm you dealt with, please contact the FSA's Helpline on 0845 606 1234.
5. What happens if the firm that sold the Eurolife Secured Bond ISA to me is unable to pay my claim for compensation?
FSCS can consider claims against authorised firms who are unable, or likely to be unable, to pay claims against them. FSCS describes firms in this situation as being in default. If you believe that the firm you dealt with is unable to pay your claim, contact FSCS on 0207 892 7300.
6. I was sold the Eurolife Secured Bond ISA by a firm that FSCS has declared in default. What should I do?
If you are aware that the firm you dealt with has already been declared in default by FSCS, or if you believe that the firm you dealt with is unable to pay your claim, contact FSCS on 0207 892 7300. You can check whether the firm you dealt with has already been declared in default by FSCS by checking our online database or by calling our Customer Services Team on 020 7892 7300.
7. How does FSCS protect consumers of authorised investment firms that are unable to pay claims against them?
Consumers can apply to FSCS for compensation in respect of investments:
- if they suffer losses arising from bad investment advice, poor investment management or misrepresentation and the firm is unable to pay claims against it;
- if an authorised firm goes out of business and cannot return their investments or money owed to them.
A compensation limit applies to these claims (see Question 8).
8. What is the level of protection provided by FSCS?
There are limits to the amount of compensation FSCS can pay. For claims against authorised investment firms the limit is £48,000 (100% of the first £30,000 and 90% of the next £20,000). We can only pay compensation for financial loss.
More info on the Eurolife Secured Bond ISA are available on the FSA's website.