Fyshe Horton Finney Limited


1. Who is eligible for compensation from FSCS?

FSCS is the compensation fund of last resort for customers of authorised financial services firms. If a firm becomes insolvent or ceases trading, such as Fyshe Horton Finney Limited (‘Fyshe’ or the ‘Company’), we may be able to pay compensation to its customers.


Generally speaking, FSCS can only accept claims for compensation from eligible clients such as, individuals, small companies and some other entities, such as trusts.


From the work undertaken to date, it appears that all investment products sold by Fyshe will be eligible for compensation (‘protected’) under FSCS compensation rules. Further details may be found on investment types and their protected status here.
 

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2. Will I be receiving an Application Form (AF) from FSCS?

In order to ensure all eligible clients receive compensation from FSCS as quickly as possible, claims will be processed as outlined below:


a. Clients holding one account, with an agreed total balance below £50,000


Eligible clients that have returned their signed Fyshe Claim Agreement Form will be receiving a cheque directly from FSCS to the value of their total agreed balance, net of fees for which they have received an invoice from Fyshe.
Completion of an FSCS application form will not be required.
 

b. Other identified clients

These clients will receive an application form for compensation from FSCS.  It should be completed as fully as possible, detailing all accounts held with Fyshe and returned along with supporting documentation, to the address stated on the application form or using the enclosed pre-paid envelope.
To make a claim, these clients will need to:

  • Have all their balance(s) agreed with the Special Administrators, Harrisons.
  • Complete and return the application form to FSCS.

 

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3. What should I do once I have received an application form but if I am unsure how to complete it?

Once received, please try to complete the application form to the best of your ability, and avoid leaving any questions blank. The completed form should then be signed by the account holder(s) and returned along with any documentation that you believe is relevant to the claim.


If you have specific queries about individual questions on the form, please contact the FSCS helpline on 0800 678 1100 or 0207 741 4100 and we will be happy to help you.
 

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4. How long will FSCS take to process my claim?

We are unable to give a precise estimate, but if claimants who have returned a completed application form to FSCS are found to be eligible, and have agreed a final balance with Harrisons for every account held, the FSCS will seek to pay compensation as quickly as possible.

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5. How will my compensation be calculated, and what compensation will I receive from FSCS?

This will be based on the agreed account balance and other information FSCS receives from Harrisons.
 

Some accounts are subject to ISA management fees, for which invoices have been  sent by Fyshe. This amount will be deducted from any agreed balance by the Special  Administrators prior to payment.
 

Should FSCS become aware that claimants owe any other monies to Fyshe, those monies will be deducted prior to compensation being paid.
 

FSCS can pay up to £50,000 in compensation per person, per claim.
 

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6. Should I await a dividend from the Administrator, or make a claim with FSCS instead. What can I claim from FSCS if I get the dividend first?

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 compensation, it will then take over your claim in the administration and receive all future dividends that would otherwise have been due to you (and will pay some or all of that dividend on to you if you are still suffering a loss after the FSCS payment). 


If the Special Administrators pays first, FSCS will deduct that amount from your loss calculation and pay you up to £50,000 to cover your remaining shortfall. You can, however, choose to refuse our offer of compensation and continue your full claim in the administration.  After you have received any dividend(s) from Harrisons you can then return to FSCS to claim for any remaining shortfall.
 

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7. How am I affected if I held ISA accounts?

HM Revenue & Customs guidance (please refer to the links below) is that those clients whose investments were in an ISA account will be able to re-invest those ISA funds as a single subscription which will not count toward their annual limit (i.e. the investment will not be double counted for the purposes of the individual’s tax free allowance).


The guidance suggests clients of the firm reinvesting their ISA savings need to be able to show the new ISA account manager:

  • the balance held in the account at the date of Special Administration. The confirmation letter sent to you by the Special Administrators on the agreement of balance(s) should assist for this purpose; 
  • the current year subscriptions (tax year 2013/4) (if any) and;
  • the date of first subscription in the current year


Please see the following HMRC web pages on ISA reinstatement for further details:
http://www.hmrc.gov.uk/isa/isa-reinstatement.pdf
http://www.hmrc.gov.uk/isa/bulletin45.pdf 

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8. What if I believe I am suffering financial hardship and need my claim to be considered urgently?

Once an application form has been returned 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.


Please note that FSCS cannot progress any claims until account balances have been agreed with Harrisons and have been notified to FSCS and a completed application form has been returned by you to FSCS. We may also ask for documentary confirmation of your relevant financial circumstances.

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9. FSCS Application form refers to an assignment of my rights. What is meant by this?

If FSCS pays a claim for compensation, under the terms of its offer of payment, a claimant will be required to assign (make a legal transfer) to FSCS all their legal rights in relation to their claim. This enables FSCS to 'stand in the shoes' of claimants in respect of their entire claim in the administration. Relying on these rights, FSCS will seek to recover the total value of the claim against the firm.


If you have received an FSCS payment you will have assigned your rights to us. This means that any dividend you would have received from Harrisons will now be paid to us. Please see question 12 for further information.


The compensation payment is in full and final settlement of your claim for compensation from FSCS, and in discharge of FSCS’s obligations to you. Your rights against the firm and any relevant third parties are also transferred to FSCS.

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10. If I receive compensation from the Special Administrators (Harrisons) can I still pursue a claim with FSCS?

Yes you can. However, when calculating your compensation FSCS will deduct any payments you have received from the administrator from your final compensation loss calculation.

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11. What happens if I have received compensation for my losses from a third party? Can I still claim compensation from FSCS?

If at any time you receive money from anyone other than FSCS or Harrisons relating to your Fyshe losses, you must immediately declare it to FSCS and Harrisons. 
 

FSCS provides compensation for financial losses suffered only where they cannot be paid by anyone else. It is a requirement of your agreement with FSCS that you have not received compensation for your Fyshe losses from anyone else.  Your agreement with FSCS transfers to them your legal right to claim against Fyshe and requires you to repay FSCS if you receive a recovery from anyone else. 


This means that if you have already sold your right to claim against Fyshe to someone else (e.g. a fund company) before you signed the application to FSCS, you are not entitled to any FSCS payment. If you receive any payment from a third party after you receive FSCS compensation, you are legally obliged to inform FSCS and, if required to do so, to repay some or all of the compensation paid to you by FSCS. 
 

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12. What happens if my losses are over the £50,000 compensation limit and I accept compensation from FSCS ?

 

If you choose to accept FSCS compensation, 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 instead of you 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 back to you any amounts that you would otherwise have received if you had accepted the dividends before claiming on FSCS.  Our rules require that you are no worse off whether you claim from us first or whether from the administrator first.

Example 1:

  • Loss = £80,000
  • FSCS compensation = £50,000
  • Dividend of 50p/£ received from Harrisons by FSCS = £40,000
  • FSCS pays £30,000 to claimant so he is fully compensated (total £80,000), and retains £10,000 recovery for itself

 

Example 2

  • Loss = £100,000
  • FSCS compensation = £50,000
  • Dividend of 50p/£ received from Harrisons by FSCS = £50,000
  • FSCS pays £50,000 to claimant so he is fully compensated (total £100,000), and retains nothing for itself

FSCS does not have to have made a full recovery of its £50,000 before it starts paying its dividend recovery on to claimants.
In some instances, a small charge may be deducted for the administrative costs and associated expenses of dividend recovery and distribution.


Claimants are not compelled to claim through FSCS, or to accept the offer of FSCS compensation.  If you do not want to assign (transfer) your Harrisons administration claim to FSCS in exchange for the compensation, then you can refuse FSCS compensation and continue your claim in the administration. After you have received the dividend(s) you can return to FSCS to claim for any remaining shortfall. 


If you choose to pursue your claim with Harrisons directly, you should advise them immediately.
 

 

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