Published today – while attention lies elsewhere – the Northern Rock compensation order SI 2008/718 .
The schedule para 3 (2) “The amount of compensation payable to a person shall be an amount equal to the value immediately before the transfer time of all shares in Northern Rock held immediately before the transfer time by that person.” The transfer time in para 2 is defined as the beginning (ie midnight) 22nd February 2008).
And para 6 valuation is “it must be assumed (in addition to the assumptions required to be made by section 5(4) of the Act (compensation etc. for securities transferred etc.)) that Northern Rock —(a) is unable to continue as a going concern; and (b) is in administration.”
Para 11 provides that an independently appointed valuer will serve an assessment notice detailing the compensation due, and under para 12 this can be revised.
And then in para 14 “The Treasury shall not be required to make a payment in accordance with sub-paragraph (1) until— (a) they have received a copy of the assessment notice or revised assessment notice, as the case may be; or (b) if there is a reference to the Tribunal, the matter has been finally disposed of.” BUt this does not say when the Treasury shall be required to pay 😉 .
And anyone dissatisfied with the notice can apply to the Financial Services and MArkets Tribunal for review (that brings any dispute within the court structure, but within the terms of the Tribunal and INquiries Act).
This comes into force tomorrow.