9th December 2014
The Financial Services Compensation Scheme (FSCS) has now received clarification from HMRC about the tax implications for Standard Life SIPP members with eligible claims against Catalyst. As a result, FSCS, Standard Life and HMRC have now agreed a process for making payments to affected claimants.
The agreed process will be for Standard Life (as the SIPP Trustee) to provide FSCS with a full legal assignment of the ARM assets. This assignment will be made at nil value and on the basis that any recoveries are repaid to the SIPP rather than directly to the investor. The amount of compensation paid and costs incurred in pursuing the assigned rights will be deducted by FSCS from the recoveries before being paid to the SIPP.
Claimants will need to grant consent to Standard Life for them to provide FSCS with a full legal assignment of the ARM assets. FSCS will contact affected claimants to obtain the required consent once its initial assessment of claims has been completed. This will enable FSCS to pay eligible claimants the compensation they are due, and any recoveries received in the future will then be paid into the investor’s SIPP.
For details of the agreed payment process please read FSCS and Standard Life’s joint announcement.