Provident's application for permission from the court to hold meetings of its scheme creditors to vote on a scheme of arrangement (the 'Scheme') was heard at the High Court today.
The FCA attended the court hearing to outline a number of concerns it has with the Scheme, which were also provided to the firm in a letter prior to the court hearing.
The FCA’s key concern is that consumers are offered significantly less than the full amount of compensation they are owed.
The alternative to a scheme is insolvency of the firm where consumers are likely to receive no compensation. We want customers who are eligible to vote on the Scheme to be able to decide whether to support it or not, so in the interests of transparency and giving all scheme creditors and wider stakeholders an opportunity to better understand the FCA’s position on the Scheme, we have today published our letter of concerns.