This press release was issued following the announcement of a financial restructuring by the West Bromwich Building Society which adversely affects the PIBS holders. The latest news on this subject is at the bottom of this page.
The announcement by the Society and the prospectus for the PIBS are no longer available online. This paragraph was on page 19:
"Whilst Condition 4(3)(b) entitles the Society, in its sole discretion, to cancel, in whole or in part, any scheduled interest payment as required by current policy of the Supervisory Authority, it is the Society’s intention not to cancel any part of a scheduled interest payment other than in the circumstances described in Condition 4(3)(a)."
Paragraph 4(3)(a) refers to the need by the society to meet the capital adequacy requirements laid down by the FSA, and nothing else. It was clearly intended that this provision should only operate temporarily and when the society was in financial difficulties. It was not intended to enable a permanent change to the terms of the PIBS.
Here is the letter that Mr Morgan, one of the affected investors, planned to send to the PIBS holders: PIBS_Letter (which he could not do because of the difficult of communicating with them).
On the 27th July this letter was sent by UKSA to the Chairman of the Society, so as to clarify various issues.
GENERAL MEETING FOR PIBS HOLDERS. This note was issued on the 14th August about a meeting for PIBS holders called by the Society and our voting recommendations.
PUBLIC MEETING FOR PIBS HOLDERS. UKSA is holding a public meeting for the holders of West Bromwich Building Society PIBS on the 5th September. See this press release for more information.
REPORT ON SOCIETY'S MEETING AND UKSA MEETING.This report was issued on the 6th September concerning the meeting of PIBS holders held by the West Bromwich Building Society and the meeting held by UKSA the day after.
BRIEFING PAPER. A full statement of the current position (as at the 7th September) was issued in this note.
If you have an interest in these PIBS, please contact UKSA on 020-8467-2686 or email to uksa@uksa.org.uk
