The Building Societies Association (BSA) welcomes the announcement made by the Leeds, Newcastle and Nottingham building societies (“the societies”) of a meaningful voluntary financial support initiative to help their customers affected by the collapse of Philips Trust Corporation (PTC).

Along with our members, the BSA has been very concerned by the difficult situation faced by people who have been affected by the actions of Philips Trust Corporation and its subsequent administration. Although no building societies had a relationship with Philips Trust Corporation, and there is no legal or regulatory requirement to offer financial help, these building societies are voluntarily offering support in the unique circumstances of this case. 

It is important to note that there appears to be a number of people who are impacted by the collapse of the Philips Trust Corporation who were not connected by the building societies but became customers of PTC in some other way. Unfortunately this means that they will not be helped by the announcement today. We urge the police to further investigate the actions of Philips Trust and its directors to ensure that those responsible for the huge distress which has been caused are held to account as appropriate. 

The three societies making an announcement today between them represent the substantial majority of building society customers who have been affected by the collapse of Philips Trust Corporation. There are seven other societies who made referrals to either The Will Writing Company/Estate Planning Group/Family Trust Corporation and who are dealing with matters on an individual basis as would be expected with a smaller group of affected customers. If a customer of one of the other building societies is concerned that they may have been impacted by Philips Trust Corporation they should get in touch with their building society who will be able to provide an individual response. 

The other thirty-two building societies in the UK never made any referrals to either Philips Trust Corporation or The Will Writing Company/Estate Planning Group/Family Trust Corporation. 

Robin Fieth, Chief Executive of the BSA, said: 

“I have been very sorry to hear what has happened to people as a result of the Philips Trust scandal. I hope that the generous and voluntary offer of financial support which has been made today will help many of those affected in a meaningful way. 

“It is important that those responsible for this terrible scandal are thoroughly investigated by the police”

[Ends]

Press contacts:
Press.office@bsa.org.uk 
Debbie Enever, debbie.enever@bsa.org.uk Tel: 020 7520 5926 / 07468 747853

Notes to Editors:

1. Link to joint statement 
2. The Building Societies Association (BSA) represents all 42 building societies, as well as 7 of the larger credit unions. Building societies serve around 26 million consumers across the UK and have total assets of over £507 billion. Together with their subsidiaries, they have helped over 3.5 million families and individuals to buy a home with mortgages totalling over £375 billion, representing 23% of total mortgage balances outstanding in the UK. They are also helping over 23 million people build their financial resilience, holding over £370 billion of retail savings, accounting for 19% of all cash savings in the UK.  Within this, societies account for 40% of all cash ISA balances.
3. With all of their headquarters outside London, building societies employ around 51,500 full and part-time staff.  In addition to digital services they operate through approximately 1,300 branches, holding a 38% share of branches across the UK.