UK Government

HM Treasury: Dunfermline Building Society Compensation Scheme: Appointment of the independent valuer

Press Release   •   Dec 24, 2009 10:11 GMT

Following a competitive process, on 22 December 2009, an independent Appointment Panel appointed Ian Burns, head of Smith & Williamson’s transaction services and valuations practices, as independent valuer for the purposes of the compensation arrangements put in place following the resolution of Dunfermline Building Society.

Notes for Editors

1. On 30 March 2009 the Bank of England exercised its powers under the Banking Act 2009 to transfer some of the property, rights and liabilities of Dunfermline to (a) Nationwide Building Society and (b) a bridge bank (wholly owned and controlled by the Bank of England).  This action was taken having regard to the special resolution objectives set out in the Banking Act and the transfers were effected by virtue of the Dunfermline Building Society Property Transfer Instrument 2009.  Following these transfers Dunfermline was placed into building society special administration, and in accordance with the provisions of the Banking Act, the Treasury put in place compensation arrangements (the Dunfermline Building Society Compensation Scheme, Resolution Fund and Third Party Compensation Order 2009 (S.I. 2009/1800) (the "Compensation Order").

2. In accordance with the Compensation Order, the Treasury appointed an Appointment Panel to select and appoint the independent valuer.  The Appointment Panel comprised of Michael Izza (Chief Executive of the Institute of Chartered Accountants in England and Wales and the Chairman of the Panel), Anthony Fry (Senior Managing Director, Evercore Partners), Michael Howlin QC and Louise Tulett (Director of Finance, Procurement and Operations, HM Treasury and a non-voting member of the Panel in accordance with the Compensation Order).

3. Mr Burns heads Smith & Williamson’s transaction services and valuations practices and has over 20 years’ experience in transaction support work including due dilligence and valuations.  Mr Burns’ valuations experience covers a range of private, public and quoted companies, ranging from under £1 million to over £1 billion in size.  Mr Burns will be supported by a group of individuals from Smith & Williamson as well as Fenchurch Advisory Partners, an independent

corporate finance advisory firm.  Brodies LLP, one of the largest law firms in Scotland will be engaged to advise on Scottish law matters and Simmons & Simmons will advise on English law issues.  Mr Burns’ terms of appointment are available on HM Treasury’s website:
http://www.hm-treasury.gov.uk/d/pn12309_dunfermline_renumeration_arrangements.pdf

4. Information about the resolution of Dunfermline is available on HM Treasury’s website http://www.hm-treasury.gov.uk/press_32_09.htm.  Information on the apointment process is also available using the following link: http://www.hm-treasury.gov.uk/press_81_09.htm.    The Compensation Order and the Dunfermline Building Society Independent Valuer Order 2009 (S.I. 2009/1810) are available from the following website:  www.opsi.gsi.gov.uk.

5. All questions regarding the valuation process should be addressed to Mr Burns and directed to Smith & Williamson’s Press Office, by contacting either Kate Harrison by email at: kate.harrison@smith.williamson.co.uk or by telephone on 020 7131 4228 or Jess Koslow by email at: jess.koslow@smith.williamson.co.uk or by telephone on 0207 131 4264 Non-media enquiries should be addressed to the Treasury Correspondence and Enquiry Unit on 020 7270 4558 or by e-mail to public.enquiries@hm-treasury.gov.uk.

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PN 123/09

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