View more on these topics

Compensation scheme disagrees on Temple default

The Financial Services Compensation Scheme would like to express its concern at the reporting of the collapse of RJ Temple in last week&#39s issue of Money Marketing – RJ Temple is set to become biggest call on the FSCS.

The default of Independent Insurance is not comparable with the collapse of RJ Temple.

Approximately 200,000 policyholders were directly affected by the collapse of Independent Insurance and the Policyholders&#39 Protection Board/Financial Services Compensation Scheme have paid compensation to date of around £155m.

In contrast, the known claims against RJ Temple amount to approximately 600.

Solely based on the number of claims, RJ Temple could be the largest investment sub-scheme default declaration by the FSCS so far but your readers should also consider that the FSCS has only been making default declarations since December 2001.

The previous schemes(the Investors&#39 Compensation Scheme, the Policyholders Protection Board and the Deposit Protection Board) all dealt with much larger defaults.

The way this story was presented could lead levy payers wrongly to assume that they will be faced with bills for millions of pounds directly due to the default of RJ Temple, which we do not believe will be the case.

Heather Tilston FSCS, London

Recommended

FMG Fund Managers – FMG Rising 3 Fund

Type: Multi-manager hedge fund Aim: Growth by investing in Russia, China and India Minimum investment: $10,000 Investment split: 33.33% Russia, 33.34% China, 33.33% India Place of registration: Bermuda Charges: Initial up to 5%, annual 2% Commission: Subject to negotiation Tel: 020 7903 3955

Abbey at centre of closure rumours

Speculation that Abbey may close its Edinburgh Scottish Provident office with as many as 500 jobs being lost will not be confirmed until next year, the Group has said. Following reports that trade unions expect 500 of 750 jobs at its Edinburgh office to be lost as Abbey continues its current review of its sites, […]

Sipps outperform stakeholder funds

Stakeholder default funds are performing significantly worse than Sipps invested in unit trusts, says Hargreaves Lansdown. Its research shows the average performance of 17 major default funds is -10.3 per cent since the birth of stakeholder in April 2001. This compares with an average performance of -5.4 per cent for its 17 most popular unit […]

Mortgage club anger over Brain promotion

Mortgage clubs are furious after Mortgage Brain sent a letter to its users promoting Mortgage 2000&#39s mortgage club. The letter, which is headed with Mortgage Brain&#39s logo and signed by head of marketing Claire Kennedy, was sent out at the beginning of November. It invites users to sign up for an exclusive mortgage club, 1st:Source, […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com