No. Pritchard was not a deposit-taker so the money held does not qualify under regulatory rules as a deposit. The money will be treated as an investment, which carries maximum FSCS compensation of £50,000 per person. FSCS has no discretion to pay any more.
It is for individuals to choose which claim to pursue, but it is possible to have a claim in both places at the same time. If FSCS pays first, your legal rights will be transferred to FSCS (as a condition of the payment of compensation). FSCS will then claim in the Administration, standing “in your shoes”, and receive all future dividends that would otherwise have been due to you. FSCS will pay some or all of that dividend on to you to seek to ensure that you are no worse off for coming to FSCS first. If the Special Administrators pay first, in calculating the loss that you have suffered for its purposes, FSCS will deduct that dividend amount(s) and pay you up to £50,000 to cover your remaining shortfall.
Yes, Merchant Capital clients are eligible for compensation from FSCS.
FSCS will soon begin issuing application forms to potential claimants. When you receive the application form, you should complete it and then return it in the pre-paid envelope provided. FSCS will only be able to deal with claims once the Special Administrators confirm how much each person is owed by Pritchards. The Special Administrators cannot confirm this to FSCS until each person agrees their account balance with them first. The Special Administrators have indicated that they issued letters to confirm account balances with individuals in July. If you have not already done so, we advise you to agree your account balance with the Special Administrators as soon as possible so that we are then able to process their claim.
FSCS is aware that there are some clients who may have a claim in relation to a shortfall in their share holdings. We are currently liaising with the Special Administrators to determine the value of the loss incurred by each individual and the best process for compensating such clients. We will keep customers informed about our progress by providing an update on our website when in a position to do so.
If you choose to accept compensation from FSCS, you will be required to assign (or legally transfer) to FSCS all of your rights to claim in the Administration. FSCS will then claim in the Administration standing “in your shoes” and will claim for the whole of your loss, even if it was over £50,000. When FSCS receives the dividends in your place it will then pay to you any amounts recovered to ensure that you do not suffer a disadvantage for having accepted FSCS compensation first.
FSCS does not have to have make a full recovery of its £50,000 before it starts paying its dividend recovery on to claimants.
Claimants are not compelled to claim from FSCS, or to accept the FSCS offer of compensation. If a person does not want to transfer his legal rights to claim in the Administration to FSCS in return for accepting the payment of compensation, then s/he can decline our compensation and continue his claim in the Administration. After s/he has received the dividend(s), s/he can then return to FSCS to claim for any remaining shortfall.
We are waiting for data from the Special Administrators about corporate accounts. Once we have received and reviewed these details, we will arrange for the relevant individuals or entities to be sent the apprporiate application form(s).
This will be based on the account balance / information FSCS receives from the Special Administrators. FSCS can pay up to £50,000 in compensation per claim.
Once a claim has been made to FSCS, if any claimants believe that FSCS should treat their case as a priority because they are facing immediate financial hardship, they should let FSCS know as soon as possible. Where there is immediate financial hardship, we will do what we can to accelerate the handling of the claim.
However, please note that FSCS cannot progress claims until claimants have agreed their account balances with the Special Administrators.
Yes you can. However, when calculating your compensation FSCS will deduct any payments you have received from the Special Administrators from your final compensation amount, which will be subject to a maximum of payment £50,000.
Clients who had balances held in a currency other than sterling are advised that their client balance has been converted into sterling at the official exchange rate (the mean of the buying and selling spot rates prevailing in the London market as published) at the close of business on 10 February 2012.
FSCS will compensate clients who held funds in ISA and SIPP accounts.
For claimants who wish to transfer their Pritchard Stockbrokers Limited ISA accounts to another provider, please refer to http://www.hmrc.gov.uk/isa/isa-reinstatement.pdf for further information.
Any queries you have in relation to the tax status of these deposits should be referred to HM Revenue & Customs.
No. Any queries regarding this application form should be directed to Mazars.
If claimants who have returned a completed Application Form to FSCS are found to be eligible, FSCS will seek to pay (in most cases) as soon as possible. Although we cannot give exact timescales for this, claims will be settled well within our usual turnaround of six months for this type of claim, providing claimants have agreed a balance with The Special Administrators.
As Mazars have contacted clients to agree balances on an individual account basis, the FSCS will also register claims for each individual account. Therefore, clients who held more than one account with Pritchard or Merchant Capital will receive more than one application form.
The account for which a particular application form refers to is indicated by the Mazars reference number which appears on the application form. We advise claimants to complete all application forms as fully as possible.