FSA - Voluntary variation of permission for Welcome Financial Services Limited
March 3, 2010
Welcome Financial Services Limited is insolvent and has proposed a scheme of arrangement to certain of its creditors as part of a restructuring proposal. In addition it is facing substantial potential liabilities arising out of alleged mis-selling of Payment Protection Insurance ("PPI") policies to its loan customers and it is unable or is likely to be unable to satisfy those liabilities.
The firm has applied to vary its permission to carry on regulated activities (under Part IV of FSMA) and the FSA has granted the application.
The firm's permission has therefore been varied to:
(i) require the firm to establish and operate the scheme, under which:
- a determination will be made of what payments are due and/or action should be taken in respect of claims against the firm arising from the firm's regulated activities, including in particular the activity of mediating PPI policies for protected claimants, and arising from the activity of mediating PPI policies for pre-regulation PPI claimants; and
- such payments will be made and/or action will be taken, as more fully set out in the scheme;
(ii) provide for certain complaints to be dealt with by the ombudsman service, on the basis that the scheme corresponds to or is similar to a consumer redress scheme; and
(iii) require the firm to notify the FSA (in writing) of the date on which these requirements come into effect.