FCA has published a letter setting out its concerns over Provident SPV Ltd’s proposed scheme of arrangement. FCA attended the hearing at which Provident applied to the High Court for permission to hold meetings of its creditors in relation to the scheme.
FCA’s key concern is that, under the proposed scheme, consumers are offered significantly less than the full amount of compensation due to them. But the alternative is an insolvency, under which they would be likely to receive nothing. FCA wants to be sure everyone eligible to vote on the scheme does so. At the moment, it is not formally opposing the scheme, but reserves the right to take appropriate action in the future.