Building Societies Step Up to Aid Victims of Philips Trust Collapse | Curtis Parkinson
Voluntary Aid for PTC Victims

Building Societies Step Up to Aid Victims of Philips Trust Collapse

16 May, 2024 2 minutes reading time


The collapse of Philips Trust Corporation (PTC) in 2022 sent shockwaves through the financial lives of thousands of building society customers. PTC, responsible for managing numerous trusts holding assets totalling £138 million, fell into administration amidst allegations of mismanagement, leaving over 2,300 individuals facing the devastating loss of their life savings. However, several building societies have stepped up to provide financial aid to their affected customers in a positive turn of events.

Voluntary Aid for PTC Victims

Participating societies include Leeds, Newcastle, and Nottingham building societies, which have jointly pledged a multi-million-pound compensation scheme. The initiative aims to fully reimburse PTC victims for lost savings investments and contribute to property title restoration costs. The Building Societies Association (BSA) has welcomed this move and remains committed to supporting its customers during challenging times.

Legal Ramifications

The PTC collapse has affected the victims and sparked a broader discussion on legal considerations. Victims of the scandal have raised valid concerns about the lack of regulation for trust management companies and are calling for stricter rules to protect consumers in the future. This incident has served as a wake-up call. It highlights the need for individuals to conduct thorough due diligence before entrusting their assets to third-party providers.

While the voluntary compensation scheme is a positive step, the long-term legal ramifications of the PTC collapse are yet to be fully understood. Affected individuals are still seeking legal recourse to recoup their losses. Importantly, this incident could serve as a catalyst for regulatory changes, potentially strengthening consumer protection within the trust management sector.

Our Advice

This case reminds us of the risks inherent in financial investments—even those as seemingly secure as trusts. It underscores the crucial role of professional advice and thorough research in making sound financial decisions.

It’s important to understand that misleading promises often persuade many people to choose schemes like PTC. Unscrupulous companies often tout trusts as solutions for asset protection, for example, against care home costs. Avoiding probate fees, safeguarding inheritances, and reducing inheritance tax (IHT) have also been added to the list.

If you’re considering a Trust or have been impacted by the Phillips Trust Corporation situation, our Private Client Team is here to help. We provide expert guidance on tailoring Trusts to your needs and navigating the processes. Get in touch with us today. We’re here to help.

Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.

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