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A request to obtain the contact details of West Bromwich Building Society members with a view to taking action against the board has been rejected by the FSA.
James Marchant, himself a member, applied for access to the names and addresses of the West Bromwich Building Society in June 2010.
Marchant says the society failed to consult properly with members about changes to their holdings during the capital restructuring of the society in June 2009.
He wants to contact the society's members in order to gauge interest in possible action to persuade the board of directors to revisit the terms of the capital restructure.
In June 2009, society members holding subordinated debt agreed to swap their Permanent Interest Bearing Shares (PIBS) for Profit Participating Deferred Shares (PPDS).
Marchant says the society has a duty to ensure PIBS and PPDS holders have yield equivalence. He alleges society members were not consulted properly and were "treated very unfairly" during the restructure.
He also claims the society gave PIBS holders misleading information before the restructure which clouded their decision.
However, the FSA has refused Marchant access to other members' details on the grounds it is unnecessary to communicate his concerns directly to other members.
The FSA says PIBS holders are already able to discuss their concerns at AGMs and have done so in 2009 and 2010.
It adds: "There is reasonable doubt that if contacted, PIBS holders... would support [Marchant], as they had already agreed on the capital exchange."
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| Comment | FSA rejects West Brom BS revolt attempt |
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FSA rejects west Brom BS revolt attempt
As we know , once the FSA has made up it's mind that is it. There is no further reasoning and how do they calculate resonable doubt. They are a law unto themselves and give no room for concerns of even a member As for being an honest broker, now don't be silly.
Posted by: Jennifer Nicholls
Impartial Regulator
Jennifer - I was somewhat tongue in cheek when I suggested the FSA might be able to act as an "honest broker" as having seen the TSC pulling Hector and Mrs Nicholls pieces and showing them up for what they are teh other day, "honest and ethics" when used by them is like listening to an Arthur Daly character! "trust me governer.... honest I never done Nuffing! It was 'im"
Posted by: Nameless
Data Protection
Why is the FSA involved. Is it not the function/duty of the Information Commissioner to deal with such matters.
Posted by: M J Winfield
Data Protection
Why is the FSA involved. Is it not the function/duty of the Information Commissioner to deal with such matters.
Posted by: M J Winfield
Data Protection
I cannot see any reason why anyone should be entitled to the contact details of all the members of any organisation. This information, once obtained, could go astray and could be used inproperly. I also agree with M J Winfield. This should have been a matter for the Information Commissioner. It does, however, sadden me to have to agree with the FSA.
Posted by: Su
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Data Protection v TCF
Whilst I don't think giving the names and address of members to Mr Marchant would be correct, particualrly from a Data Protection point of view, I see no reason why he should NOT be allowed as a member at his own cost to be able to draw his legitimate concerns to the attention of the members. Could not the FSA act as an honest Broker (a know that would be a complete impossibility) and if Mr M provides the letters wording and postage/printing costs, oversee the mailing? Or are the FSA saying there is NO merit in his concerns and complaint?
Posted by: Nameless