DBS Independent Valuer

I have made good progress in my work to date.

In the first phase of my work, I sought information relevant to my duties from a wide range of sources, including the administrators of Dunfermline Building Society (DBS), from Nationwide Building Society, HM Treasury, the Financial Services Authority and the Bank of England.

I received a good deal of information which I have been reviewing.

I have also sought input to my work from other interested parties.

I published notices in English and Scottish newspapers of my appointment. I have been permitted to publicise my role through the websites of the Nationwide Building Society and the administrators to DBS.

I have invited any affected person to contact me at the address give in the contact section of this website.

Representations had been made to me by persons who considered themselves to be affected by the application of the statutory resolution procedure in relation to DBS. I have been considering such representations.

A good deal of my work to date has related to that part of my responsibilities that deals with the determination of what the Financial Services Compensation Scheme would have received in a "counterfactual" insolvency of DBS. I am well advanced in modelling the related cash flows. This is one of the duties that I have as independent valuer.

Another of my duties is to review certain costs relating to the Bridge Bank established under the legislation. HM Treasury have confirmed to me that there are no such costs to be reviewed by me.

During my appointment, the legislation relating to my role and duties has been amended. The amendments are now in effect and the result is to increase the matters with which I am required to deal. I have been addressing such matters, following the new legislation taking effect.

During the course of my appointment to date, legal issues have been identified which could affect my determinations. While I have, with the assistance of my advisers, been able to deal with many of them, there are others where it is considered to be necessary to seek directions from the Court. I understand that an application is to be made to the Court in Edinburgh by the administrators to DBS and this is expected to be submitted shortly. The decision of the Court on such matters is expected to be directly relevant to the determinations that I am required to make under the legislation applicable to my role.

I would hope to be able to finalise and publish my determinations following the receipt of the directions of the Court.