The Financial Services Compensation Scheme would like to express its concern at the reporting of the collapse of RJ Temple in last week's 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' 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' 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