Hartmann Capital Limited (in Special Administration)
- Who is eligible for compensation from FSCS?
- Will I be receiving an application form from FSCS?
- What should I do once I have received an application form but if I am unsure how to complete it?
- How long will FSCS take to process my claim?
- How will my compensation be calculated, and what compensation will I receive from FSCS?
- What should I do if I am suffering financial hardship and need my claim to be considered urgently?
- The FSCS application form refers to an assignment of my rights. What does this mean?
- If I receive compensation from the Special Administrators can I still pursue a claim with FSCS?
- What happens if I have received compensation for my losses from a third party? Can I still claim compensation from FSCS?
- What happens if my losses are over the £50,000 compensation limit and I accept compensation from FSCS?
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 Hartmann Capital Limited (‘Hartmann’ or the ‘Company’), FSCS may be able to pay compensation to its customers.
FSCS can only accept claims for compensation from eligible clients such as individuals, small companies and some other entities such as trusts.
2. Will I be receiving an application form 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. Individual clients holding one account, with a compensation balance below £50,000
Completion of an FSCS application form will not be required.
b. Other 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 Hartmann 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.
Complete and return the application form to FSCS.
3. What should I do once I have received an application form but if I am unsure how to complete it?
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.
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 the Special Administrators for every account held, the FSCS will pay compensation as quickly as possible.
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 the Special Administrators.
Some accounts have had fees applied. This information has been taken into account and fees will be compensated in most cases.
FSCS can pay up to £50,000 in compensation per person, per claim.
6. What should I do if 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 us know as soon as possible. Where there is immediate financial hardship, we will do what we can to progress their claim.
Please note that FSCS cannot progress any claims until account balances have been agreed with the Special Administrators 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.
7. The FSCS application form refers to an assignment of my rights. What does this mean?
If FSCS pays a claim for compensation a claimant will be required to assign (make a legal transfer) all of their legal rights in relation to their claim to FSCS. 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.
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.
8. If I receive compensation from the Special Administrators 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 payment.
9. 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 the Special Administrators relating to your Hartmann losses, you must immediately declare it to FSCS and the Special Administrators.
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 Hartmann losses from anyone else. Your agreement with FSCS transfers your legal right to claim against Hartmann to FSCS 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 Hartmann to someone else (e.g. a fund company) before you signed the application to FSCS, you are not entitled to any payment from FSCS. 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.
10. 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) all of your rights to claim in the administration to FSCS. FSCS will then claim in the administration instead of you and will claim for the whole of your loss (including losses in excess of £50,000). If FSCS receives 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 from FSCS. Our rules require that you are no worse off whether you claim from us or the administrator first.
FSCS does not have to have make a full recovery of its £50,000 before it starts paying its dividend recovery 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 claim to FSCS in exchange for 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 the Special Administrators directly, you should advise them immediately.