30 May 2024.
We have been closely monitoring the development of this complex situation and remain deeply saddened by what has happened to customers of Philips Trust Corporation (PTC).
At our recent AGM we said this matter was under active review and since then have been working with many stakeholders to understand how we can help those affected by PTC’s actions.
The FCA recently confirmed we never ever had a relationship with PTC and have no legal or regulatory requirement to offer financial help. However, we have decided to step in and offer financial support to our affected members on a voluntary basis because we recognise the terrible situation they are in due to PTC’s actions. This support will be aligned with the approach already announced by three other societies (Newcastle, Nottingham and Leeds).
We have been able to offer this voluntary support because we are a purpose-led organisation. We hope this move brings some comfort and reassurance to customers and their families during what has been a very difficult time for them.
We note the ongoing police investigation into potential criminal activity by PTC, and we will give our full support to the relevant authorities in bringing those responsible to account for the deep distress they have caused.
What this means for affected customers
Support will be provided where a customer was initially referred by one of the societies to the Will Writing Company/Estate Planning Group/Family Trust Corporation and where Philips Trust Corporation subsequently became a trustee of their trust and remained so at the point of administration, or, as at the date of its administration, Philips Trust Corporation held an investment on behalf of their trust and continues to do so. Support will be directed towards:
1. Trusts involving investments: re-establishing 100% of each customer’s Philips Trust Corporation investment balance (i.e. each customer’s Accepted Claim as verified by Kroll, the administrators).
Accepted Claims are verified as part of the Distribution Plan approved by the court on 31 March 2023. Offers will be valid for 6 months on a full and final basis. In view of the voluntary support, the societies will look to ensure that any future recoveries from the investments which become available for distribution will be used to reimburse the societies, up to the amount of the voluntary payment made.
2. Trusts involving a property: providing up to £2,400 towards the cost of replacing Philips Trust Corporation as trustee and appointing a new trustee.
This is applicable both to customers who have already transferred their trust away from Philips Trust Corporation after the date of the administration and for those customers who have yet to do so. This will be inclusive of any support already provided to customers involving the appointment of new trustees.
3. The small number of investment-only trusts: providing a financial contribution towards replacing Philips Trust Corporation as trustee and appointing a new trustee, the cost of which is yet to be determined.
What happens next
Kroll will be writing to affected customers shortly to outline next steps in the process. Customers should read this letter and respond accordingly.
This remains a complex process and exact timings will vary on a case by case basis.
There is no need for customers to contact Saffron Building Society at this time – Kroll will handle the process.
In the meantime, you can read the BSA’s announcement here: https://www.bsa.org.uk/media-centre/press-releases/bsa-welcomes-voluntary-support-that-societies-are-providing-to-members-impacted-by-the-collapse-of-t
An update from the FCA on the Philips Trust Corporation can be found here: https://www.fca.org.uk/news/news-stories/update-consumers-philips-trust-corporation
For further help and support, the FCA have also published details of various support agencies here:
https://www.fca.org.uk/publication/documents/organisations-offering-emotional-support-practical-help.pdf
