FCA compensation for victims of 2008 deposit failures
Large unincorporated associations may be eligible for compensation following 2008 deposit failures from the Financial Conduct Authority (FCA).
Groups such as charities, clubs or societies, that were not given assistance following the collapse of Kaupthing Singer and Friedlander Bank and Landsbanki Island in 2008, could now get payoffs from the regulator.
Up to £50,000 may be available for organisations that held deposits and the FCA estimates the changes will affect 5,000 associations and 24,000 partnerships; the Financial Services Compensation Scheme will be starting to contacting them.
It may also be possible, the regulator said, that the same unincorporated associations "may also be entitled to compensation payments for investments following the past failure of investment firms".
A cut-off size for eligibility to claim will be applied. Partnerships that don't exceed £6.5m turnover, a balance sheet total of £3.26m and have more than 50 employees will be able to claim.