29th September 2014
FSCS is continuing to work with Standard Life to ensure that Standard Life SIPP members with eligible claims against Catalyst are not subject to any adverse tax liabilities. This may occur if FSCS makes recoveries in relation to their claims and pays those recoveries directly to the members.
FSCS and Standard Life have jointly written to HMRC asking for clarification on the tax issues, and we expect HMRC to provide its response in October. Once we have received clarification from HMRC, FSCS and Standard Life will agree the approach for assessing affected claims.
As stated in our July update, when FSCS pays compensation for claims against Catalyst, it takes an assignment of a claimant’s rights to pursue recoveries against Catalyst and any other party responsible for the loss. This is likely to include ARM Asset Backed Securities SA. You can read more about this in our July update.
FSCS is not able to pay compensation to any Catalyst claimant whose ARM investment is held in a Standard Life SIPP until this matter has been resolved. Unfortunately, this means that in some cases FSCS may not be able to meet its target of issuing decisions within 6 months of receipt of an application form, and we regret any inconvenience this may cause.
We will provide a further update on our website as soon we are able to.
We thank you for your patience in this matter.