A Havant-based bank with just over 250 customers and around £7.4m in deposits has gone into insolvency, with the FSCS set to compensate victims.
Southsea Mortgage and Investment Company has ceased trading after the Financial Services Authority (FSA) initiated a special resolution regime (SRR), with the Bank of England making a subsequent application to court. According to the FSA, the failure followed "a deterioration in its financial position as a result of management decisions and the firm's specific business model". Depositors have been told they are entitled to compensation of up to £85,000 each, with the FSCS aiming to send it automatically within the next seven days. The FSCS added: "Customers of the bank with an ISA ...
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