PMS investigated

The News Letter is reporting that the Presbyterian Mutual Society is being investigated by the Financial Services Authority to establish if it was operating as a bank without having having registered with the FSA. According to the News letter, if the FSA investigation decides the PMS was operating as a bank its former directors could face criminal proceedings. An FSA spokesman confirmed that an investigation was under way but said that it was not yet possible to say when it would be concluded.

A spokesman for the PMS administrator, Arthur Boyd, said that confidentiality rules meant he could not comment on the investigation, but pointed out that he had stated in his January communique to members that he had been contacted by the FSA to “seek clarification around the nature of the business undertaken by the society.”

  • I have for sometime thought there was something odd about this financial institution.

    From everything I read about it, the PMS came across like a sort of hybrid between an investment organisation and a bank. It did issue shares to customers but the shares became like a currency to enable customers to have the equivelant of deposit / withdrawal banking services.