Announcement by the Trustees to contributors of the new Code fund of the live conversation service providers compensation fund

As announced on 22 May 2009, the Fund is in the process of being wound up and monies being returned to eligible contributors as at that date.

Unfortunately, progress has slowed considerably mainly due to difficulties in tracing contributors and/or persuading them to respond in a timely manner. Some contributors have ceased to exist, some proved more time consuming to correspond with and some have not yet been contacted at all. However, the Trustees continue to use their best efforts to expedite matters insofar as is possible.

To date, the Trustees have successfully distributed £415,400 to 62 of the 72 eligible contributors, who have each received £6,700. The Trustees believe that there now remain 9 eligible contributors, who have not yet been found and therefore have not been paid. The original estimate was that each contributor would receive back a total of £7,200 and the Trustees’ view remains that this should still be achieved. However, the final amount available will depend on a number of factors, some of which may not become known for a number of years and which require the Trustees to periodically assess the likelihood of tracing the remaining contributors and the likelihood of any challenges to the winding up.

The Trustees have received legal advice that the minimum period for which the Fund should continue is 6 years from the start of the winding up, so it is not until 22 May 2015 that the Trustees can be fully satisfied that they are in a position to finally wind down the Fund. Accordingly, the Trustees have presently resolved that the balance of monies currently available for distribution should be retained during this period.

Please find an Interim Distribution Statement showing the position of the Fund - starting from the first day of the current financial period to date – and the expected final balance available to contributors.

Finally, in answer to a number of enquiries, the Trustees will only pay cheques to the original contributor, subject to any registered change of name. The legal entity must be the original contributor in all cases.

Unless otherwise advised to us in writing, all correspondence will be sent, in the case of companies, to the registered office address shown at Companies House or equivalent for foreign companies and, in the case of individuals, to their last known address notified to us. If your address has changed then please notify us by email to steven@conybeare.com, by fax (0870 762 7925) or by post.

Dated 26 January 2010

Steven Conybeare and Paul Hampton
Trustees
3rd Floor, Clearwater House
4-7 Manchester Street
London W1U 3AE