NORTHERN PROVIDENT INVESTMENTS LIMITED (“NPI”) – FAQ FOR INVESTORS

  1. Who are Northern Provident Investments?

    Northern Provident is the ISA Manager for your investment. This means that Northern Provident provide the tax wrapper around your investment which enables that investment to hold ISA status. As part of this, Northern Provident Investments facilitated your investment in bonds by accepting your funds and transferring these funds to a bond issuer.

  2. Is my investment in Northern Provident Investments?

    No, your investment is not in Northern Provident Investments, your investment is in a bond issued by a separate company (the bond issuer); upon receipt of your funds, Northern Provident Investments transferred these to your bond issuer to subscribe to bonds issued in your name.

    You are not invested in Northern Provident Investments and Northern Provident Investments does not hold any invested funds or securities (i.e. the bonds or shares themselves).

    The funds should either be held by your bond issuer or have been used by that firm in line with the purpose for the funds detailed on the Information Memorandum/Prospectus and are held in your name.

  3. What has happened to Northern Provident Investments?

    Northern Provident is ceasing to trade and will no longer perform any operations on behalf of its customers.

  4. What has happened to my investment?

    Your investment continues as before and is not affected by Northern Provident Investments ceasing to trade. Northern Provident Investments does not hold any of your funds or securities and you are not invested in Northern Provident Investments. The bond issuer with whom you are invested in continues to trade and your bonds continue to be active.

  5. Will I still receive my due interest?

    Interest will continue to be the responsibility of the bond issuer and should be paid as normal as per your schedule.

    The only change will be that investors who normally receive interest via Northern Provident Investments due to be paid in the future will interest directly from the bond issuer or via another ISA Manager.

  6. Where are my funds?

    Your funds continue to be held by the bond issuer in whom you have invested. For the avoidance of any doubt, these funds are not held by Northern Provident Investments, and

    the funds you have invested in are unaffected by Northern Provident Investments ceasing to trade.

  7. How do I get more information about my investment?

    Any details you require about the status of your investment should be requested directly from the bond issuer. Unless your bond issuer has made alternate arrangements, you will shortly lose access to the online platform operated by Northern Provident Investments. Therefore, you must contact the bond issuer directly.

    Please note that this will only be the case where Northern Provident Investments are operating the platform for the bond issuer, you should contact your bond issuer to find out but any platforms we manage will be removed from access. Otherwise, it will be your bond issuer’s responsibility for the maintenance of the online platform.

    The contact details for the bond issuers you are invested in can be accessed here

  8. I want my money back, how do I get it?

    All bonds will continue to follow the normal redemption schedule outlined by the bond issuer in their Information Memorandum/Prospectus.

    Should any investor wish to request early redemption of their bonds, they should contact the bond issuer as normal.

  9. What has happened to my ISA?

    Northern Provident Investments will cease to provide the ISA wrapper through which your investment has been made once in liquidation, but this does not mean you have lost your investment or indeed lost the ability to have your ISA provided by another manager.

    Your bond issuer (the company with which you have a made an investment), will seek to make arrangements to ensure that your ISA is taken over by another ISA Manager. We understand that you will be contacted regarding these alternative arrangements by your bond issuer in due course.

    You may want to also seek your own alternative ISA manager, but investors should speak to your bond issuer in the first instance in relation to this.

    The proposed liquidators propose to write to all investors and HM Revenue & Customs as soon as reasonably practicable (and in any case within 30 days) after their appointment.

  10. Who is my ISA Manager now?

    Northern Provident Investments is currently your ISA manager, but will notify HMRC that they will cease to be so once it enters liquidation.

    Your bond issuer (the company with which you have a made your investment) will seek to make arrangements to ensure that your ISA is taken over by another ISA Manager.

    We understand that you will be contacted regarding these alternative arrangements in due course.

    The contact detail for bond issuers can be found here

  11. Is NPI currently holding any of my money? How long for?

    NPI currently holds a small amount of client money in a designated client account. All clients for whom we hold money have been contacted individually and appraised of their options to receive that money back as a refund or transfer to another ISA.

    If you have not been contacted in this regard, we are not holding client money for you.

    Should any client funds remain once NPI enters Liquidation, these monies will be dealt with by the Liquidator.

  12. I have an existing complaint against NPI at FOS, how is this affected?

    This complaint will remain at FOS until NPI is in liquidation. Once in liquidation, you may potentially be able to submit a claim to FSCS. However, at this time, FSCS is in the early stages of investigating whether there are any claims against NPI that would meet the qualifying conditions for compensation. You can find out more here.

  13. Can I still make a complaint against NPI?

    Yes, you can still make a complaint against NPI if you are eligible. However, once in liquidation, you may potentially be able to submit a claim to FSCS. At this time, FSCS is in the early stages of investigating whether there are any claims against NPI that would meet the qualifying conditions for compensation. You can find out more here

  14. How long will the liquidation last?

    It’s difficult to quantify precisely how long a liquidation will last, but liquidations will typically last for at least 12 months.

    Once the liquidation is complete, NPI will be dissolved.

  15. Do I have a say in who the new ISA manager will be? Will there be any cost involved in switching to a new ISA manager?

    You will be given the opportunity to agree to the service of new ISA manager. If this is arranged by the bond issuer you will need to agree to the new ISA managers terms. If you do not wish to do so you have no obligation to, but it is likely your investment will lose its tax-exempt status. You may be able to source your own ISA manager, if this is the case you will determine who this is and agree to their terms.

  16. How do I contact my investment / bond issuer?

    Please see the link here to our ISA bond issuers and their respective contact details. You can access the FCA statement regarding this matter using the following link http://www.fca.org.uk/news/news-stories/consumer-warning-northern-provident-investments

  17. How do I contact the Liquidator?

    The proposed liquidators will write to investors as soon as is reasonably practicable upon their appointment, but do not have any authority to deal with matters relating to NPI until they are appointed.