Midland Bank Trust Company Limited

We have identified that, from the early 1980s, Midland Bank Trust Company Limited (now HSBC Trust Company UK Limited) used the wrong fee scales when calculating and charging fees in some of its trusts. Specifically, in the trusts concerned, since the early 1980s the fees were incorrectly calculated using the 'current' scale in force at the time of charging rather than the fixed historic scale authorised by the charging clause in the original Will or Deed.

To correct the position, we are compensating all the affected trusts and beneficiaries in line with the requirements of the UK financial services regulator, the Financial Conduct Authority (FCA).

Most of the affected trusts that were distributed and closed after 1983 (the earliest date for which we have historic accounting records) have been identified and compensation has been paid, or is in the course of being paid, to all disadvantaged beneficiaries of those trusts.

We are now considering claims for compensation in respect of any other affected trusts. These trusts will primarily be those that were distributed and closed between 1979 and 1983 (pre-1983 trusts). Not all trusts will be affected; many will have been subject to a 'wide' fee charging clause in the relevant Will or Deed, in which case the application of 'current' fee scales would have been correct. However, where a trust was adversely affected, we will compensate the beneficiaries, or the personal representatives of any deceased beneficiaries, on production of satisfactory evidence of their entitlement.

You are a 'Person Potentially Entitled to Receive Compensation' if

A. You can answer 'Yes' to all three questions below

    1. Were you either:

        a. a beneficiary or
        b. the representative of a deceased beneficiary or,
        c. the New Trustee

    of a trust previously managed by Midland Bank Trust Company Limited?

    2. Did you (or the beneficiary) receive a capital distribution from the trust after 1 January 1979 or were you (or the beneficiary) in receipt of regular payments of income from the trust after that date.

    3. Do you have evidence of your (or the beneficiary's) entitlement?
    (For example, documents issued by Midland Bank Trust Company Limited such as, Distribution Accounts, Income Statements, Letters, Copy Deeds).

    and

B. You have not already received compensation from HSBC Trust Services for the overcharged fees
       

If you are a 'Person Potentially Entitled to Receive Compensation' as defined above, please print and complete the attached Questionnaire and return it together with the evidence of your entitlement (originals or photocopies) to:

FACT
HSBC UK Bank plc
PO Box 719
Parkway
Fareham
PO14 9QH

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