Victory at last in fight over Philips Trust fund

AT LAST, after a titanic battle, most victims of the Philips Trust Corporation scandal will get the financial justice they richly deserve. Brilliant news.

Four days ago, three leading building societies – Leeds, Newcastle and Nottingham – agreed to compensate customers who lost money as a result of the questionable actions of this despicable business (now in administration).

This ‘financial support’ means the losses that customers suffered at the hands of Philips Trust will be made good. There will also be financial support for those whose properties were transferred into trusts administered by the company.

The societies’ move is generous given that their role in this scandal was one step removed (they had no dealings with Philips Trust).

Yet, it is an admission that they were wrong to encourage their customers to purchase (unregulated) will writing and trust fund services from a third party, Estate Planning Group (EPG) – and receive generous commission for doing so.

Most customers were elderly and trusted what their building society told them to do. Philips Trust came on the scene later, taking over the management of trusts set up by EPG’s Family Trust Corporation. It then went into administration in April 2022, leaving funds in tatters.

In recent weeks, it became obvious that the three societies had to act. They had faced awkward questions at their annual general meetings, while an early day motion was tabled in Parliament calling for societies to cover victims’ losses.

Coverage of the issue in this column and numerous local newspapers also turned the heat up on them – while the Philips Trust Action Group was unrelenting in its quest for justice to be delivered.

In agreeing to meet customer losses, the three societies have ensured their good reputations remain intact.

The only shame about the deal is that it does not extend to smaller societies caught up in this scandal. I trust they will now follow in the footsteps of their larger rivals.