■ If you choose to accept FSCS compensation, all of your rights to claim in the administration are legally transferred to the FSCS. ■ The FSCS will take assignment of the claim in the special administration for the whole of the Clients loss (even over £50,000). ■ When the FSCS receives dividends, it will pay the Client any amounts that they would otherwise have received if the Client had accepted dividends before claiming from the FSCS. ■ The FSCS will not make a profit on any assigned claim. ■ The FSCS rules require that a Client is no worse off whether you claim from the FSCS first or whether from the Joint Special Administrators first. ■ Representatives from FSCS are present at the meeting and available to answer any general questions after the meeting.
Example 1: Client account balance = £80,000 FSCS initial compensation = £50,000 Initial dividend announcement of 50p/£ results in a payment from the Joint Special Administrators to the FSCS of £40,000 FSCS pays further compensation of £30,000 to claimant so he is fully compensated (total £80,000), and retains £10,000 recovery for itself TOTAL RETURN TO CLIENT = £80,000 Please note that this is an illustrative example, as we are not in a position to estimate the dividend amount at present.
■ Example 2: Client account balance = £100,000 FSCS initial compensation = £50,000 Initial dividend announcement of 50p/£ results in a payment from the Joint Special Administrators to the FSCS of £50,000 FSCS pays further compensation of £50,000 to claimant (total £100,000), and retains nothing for itself TOTAL RETURN TO CLIENT = £100,000 Please note that this is an illustrative example, as we are not in a position to estimate the dividend amount at present.
Example 3: Client account balance = £150,000 FSCS initial compensation = £50,000 Initial dividend announcement of 50p/£ results in a payment from the Joint Special Administrators to the FSCS of £75,000 FSCS pays further compensation of £75,000 to claimant (total £125,000), and retains nothing for itself Second dividend announcement of 10p/£ results in a payment from the Joint Special Administrators to the FSCS of £15,000 to claimant (total £140,000), and retains nothing for itself TOTAL RETURN TO CLIENT = £140,000 If there are further dividends they will be paid from the FSCS to the Client until such time (if any) that the Clients full claim of £150,000 is paid If no further dividends are paid, the Client will suffer a loss of £10,000 Please note that this is an illustrative example, as we are not in a position to estimate the dividend amount at present.
Example 1: Client account balance = £80,000 FSCS initial compensation = £50,000 Initial dividend announcement of 50p/£ results in a payment from the Joint Special Administrators to the FSCS of £40,000 FSCS pays further compensation of £30,000 to claimant so he is fully compensated (total £80,000), and retains £10,000 recovery for itself TOTAL RETURN TO CLIENT = £80,000 Please note that this is an illustrative example, as we are not in a position to estimate the dividend amount at present.
■ Example 2: Client account balance = £100,000 FSCS initial compensation = £50,000 Initial dividend announcement of 50p/£ results in a payment from the Joint Special Administrators to the FSCS of £50,000 FSCS pays further compensation of £50,000 to claimant (total £100,000), and retains nothing for itself TOTAL RETURN TO CLIENT = £100,000 Please note that this is an illustrative example, as we are not in a position to estimate the dividend amount at present.
Example 3: Client account balance = £150,000 FSCS initial compensation = £50,000 Initial dividend announcement of 50p/£ results in a payment from the Joint Special Administrators to the FSCS of £75,000 FSCS pays further compensation of £75,000 to claimant (total £125,000), and retains nothing for itself Second dividend announcement of 10p/£ results in a payment from the Joint Special Administrators to the FSCS of £15,000 to claimant (total £140,000), and retains nothing for itself TOTAL RETURN TO CLIENT = £140,000 If there are further dividends they will be paid from the FSCS to the Client until such time (if any) that the Clients full claim of £150,000 is paid If no further dividends are paid, the Client will suffer a loss of £10,000 Please note that this is an illustrative example, as we are not in a position to estimate the dividend amount at present.
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