Current Market Conditions Q&As
Q – Are building societies fully eligible for the Government’s Financial Support Package which was recently announced?
A - Societies are included which gives them maximum flexibility to react to the extraordinary events now occurring in the marketplace.
Q – Will Dunfermline Building Society take part in this?
A - Like all societies, it will take us time to absorb the details of this, as there are costs as well as benefits. Our Board of Directors will consider the package carefully in the best interest of our members.
Q - What does you your new Moody’s rating mean?
A - The rating is reflective of the difficult market we operate in – other banks and building societies have been downgraded as a result of this.
Q. - If I have more than one account with the Society, can I have up to £50,000 in each account?
A – No the FSCS covers individual investors up to a maximum of £50,000 with each Financial Service firm.
Q - If I have an account with DBS and have also taken a Credit Suisse GEA account and a Norwich Union bond through DBS, how much am I covered for?
A – Any business carried out with Credit Suisse or Norwich Union would not count towards your £50,000 limit with DBS. You would be entitled to additional amounts with these firms, this may be unlimited depending on the type of product chosen.
Q - Does the FSCS cover all deposits, including fixed rate bonds?
A - Yes, all your investments with us are covered up to the £50,000 maximum.
Q - I have a joint account, are we both covered?
A - Yes, the FSCS will cover both account names on the joint account up to a total of £100,000; £50,000 per person with any one institution.
Q - If I have an account in my name and also two accounts held In Trust For my children, do the ITF accounts count towards my £50,000 maximum?
A – Yes, any accounts with the adult’s name on them would count towards their £50,000.
Q – If a Solicitor holds Professional Deposit Accounts/ Treasurer’s Deposit Account ITF a named client, how does this affect any claims under the scheme?
A - The solicitor is holding money on behalf of their clients in their professional capacity therefore the funds in the account belong to the individual, not the solicitors.
Q - Where can I find out more information about the Financial Services Compensation Scheme?
A - More information can be found either by visiting their website at – www.fscs.org.uk or by telephoning them on 020 7892 7301.
Q - If a Charity /Club/ Sole Traders account is held e.g. Treasurer’s Deposit Account, who do the funds belong to?
A - As this can only be opened by a body corporate or unincorporated body, or by a individual as a trustee for either of these, the funds belong to the body corporate or unincorporated body, not the individual. In the case of Charities, provided they fall under the category of a small company i.e. turnover of not more than 6.5million,a balance sheet of not more than 3.26 million and have no more than 50 employees then they would qualify for the £50,000. They need to satisfy any two of the three.
Q - Is my money safe?
A - Yes, your money is safe with Dunfermline Building Society. We are financially robust, well capitalised, and have strong liquidity levels, all helping to ensure the safety of our members' investments.
Q - Do we have adequate capital?
A - Yes. Dunfermline Building Society's capital levels are over and above the requirements set out by the Financial Services Authority.
Q - Has any member ever lost any money?
A - No investor has ever lost any money with Dunfermline Building Society and we are very confident of maintaining that record.
Q - What is the amount that we can receive under The Financial Services Compensation Scheme?
A - The Financial Services Compensation Scheme covers 100% of the first £50,000 of any deposit investment per customer per institution. You can obtain further information at http://www.fscs.org.uk/files/documents/pdfs/kzkxvrgmrzmpcyf.pdf.
Although it is unlikely that anyone will need to make claims to this Scheme, we understand people are worried about their money. We provide savings and investment opportunities through third party providers that may allow you to keep all of your money with us while maximising your protection under the FSCS.
One of our Financial Advisors would be happy to meet with you to help you spread your savings into accounts that will ensure the best possible protection for your money.
Q – Will the potential HBOS/ Lloyds TSB merger have an impact on our business?
A - The HBOS/Lloyd’s TSB merger will not have any direct financial effect on Dunfermline Building Society.
Q - Is Dunfermline Building Society exposed to the sub-prime market in the UK and in the United States?
A - We have no exposure to these markets.
Q - Do we have any exposure to Lehman Brothers Bank?
A - We have no direct exposure to Lehman Brothers Bank.
Q- Do we have any exposure to GMAC ?
A - DBS has no exposure to GMAC although we have purchased mortgage portfolios from them in the past.
Q - Will Dunfermline Building Society be taken over?
A - No, we are fully committed to remaining an independent mutual building society.
Q - Do the recent mergers mean the end of the Building Society sector?
A - Not at all. There have been mergers in the past and it is likely there will be mergers in the future. The building society mergers recently announced demonstrate the strength of the sector in looking after its own and will help ensure a healthy building society sector in the future.
Q - Will other building societies merge?
A - Mergers have always taken place in the building society sector and it would be no surprise if there were more. Mergers do not represent a weakening of the sector; the assets and members of the merging societies remain within the sector.
Q - Is Bradford and Bingley a building society?
A – No, they are a bank.
Q - Why are they different to Dunfermline Building Society?
A- Bradford and Bingley as a Bank, obtain about 75% of its funding from the wholesale money markets and about 25% from retail savings. In common with other Building Societies Dunfermline only obtains about 15% from the money markets with the balance from individual retail investors. In fact, historically, Dunfermline BS has had one of the highest levels of funding from Individual investors than any other Building Society or Bank in the UK.