Square Mile Securities Limited
23rd February 2009
Square Mile Securities Limited was placed into Creditors Voluntary Liquidation on 28 March 2008.
The Financial Services Compensation Scheme (FSCS) has now declared the firm in default. This means that the FSCS is satisfied the firm is unable, or likely to be unable, to pay claims against it. A declaration of default opens the way for consumers to claim compensation from the FSCS.
How to make a claim for compensation
In the next week we will be writing to all investors who have previously indicated to either the FSCS or the liquidators of Square Mile Securities Limited that they wish to make a claim. You will be asked to complete an FSCS Application Form and to provide the information we need to reach a decision on your claim. This will include copies of all relevant documents you hold in support of your claim such as correspondence, statements, contract notes and other documentation you were sent by Square Mile Securities Limited. We will be able to start investigating your claim when we receive a completed FSCS Application Form.
If you have not received an Application Form by 20 March 2009 and would like to make a claim, please contact our Customer Services Team on 020 7892 7300 or by email to confirm the details of your claim. We will then send you a form.
If you have previously completed an Application Form, you do not need to do anything more at this time. We will contact you again if we require any further information or to confirm a decision reached on your claim.
How long will claims take to process?
The FSCS will deal with all claims as quickly as it can. Once a firm has been declared in default we aim to complete the majority of claims within six months from receipt of a completed Application Form. If it becomes apparent that we will not be able to deal with your claim within this timescale, we will let you know. We anticipate dealing with the majority of claims against Square Mile Securities Limited within six months of receiving Application Forms.
Financial Services Authority's warning about 'recovery room' firms
The Financial Services Authority (FSA) published a warning about 'recovery room' firms that have been contacting investors who bought shares through Square Mile Securities Limited. The FSA warns you against paying money to such firms.
The Financial Services Compensation Scheme (FSCS) is the UK's statutory fund of last resort for customers of financial services firms and may be able to help consumers if an authorised firm is unable, or likely to be unable, to pay claims against it. The FSCS was set up under the terms of the Financial Services and Markets Act 2000 and protects deposits, insurance, investments and mortgage business.
For claims relating to investment business, FSCS can pay up to £48,000 compensation to an individual. This is calculated as 100% of the first £30,000 and 90% of the next £20,000.
You do not need to claim through a solicitor, accountant or anyone else. Bringing a claim direct to FSCS will not cost you anything. If you do decide to instruct someone to act for you, we will not be able to pay their fees.