Please be advised that EC3 Brokers Limited (“the Company”) have ceased to trade.
David Shambrook and David Hudson both of FRP Advisory Limited, 110 Cannon Street, London, EC4N 6EU were appointed as Joint Administrators of the Company on 25 November 2022. On 21 August 2023, Tony Wright also of FRP Advisory Trading Limited replaced David Shambrook as Joint Administrator pursuant to a Court Order. For all enquiries please contact: EC3@frpadvisory.com
EC3 BROKERS LIMITED (IN ADMINISTRATION) (“EC3”) – FAQ FOR CLIENTS
Updated 7th May 2024
Who are EC3 Brokers?
EC3 Brokers is an independent insurance broker authorised and regulated by the FCA that specialised in reinsurance and programme business.Is my insurance policy with EC3?
No. EC3 brokered your policy with a third-party insurance provider. If you require further details on your policy, please speak to your provider directly. If you require contact details for your provider, please contact the Administrators via email at EC3@frpadvisory.com.What has happened to EC3 Brokers?
David Shambrook and David Hudson, both of FRP Advisory, were appointed Joint Administrators of EC3 on 25 November 2022. On 21 August 2023, Anthony Wright replaced Mr Shambrook as one of the Joint Administrators of EC3. The company has ceased to trade and is not taking on or writing any new business.When will my policy be transferred?
As a client of EC3 you will need to find and nominate a new broker of record to deal with your policy and notify the Administrators. Once you have nominated a new broker, it will be your new broker that will deal with the transfer of your policy, which will occur as soon as practicably possible.A list of regulated and approved brokers can be found at https://ldc.lloyds.com/market-directory/results.
What happens if I want to make a claim on my policy?
As noted at Question 2, EC3 brokered your policy with a third-party insurance provider therefore any claims should be notified to your provider directly.Do I need to use a claims company?
No. There will be no need for you to engage a claims company. Once your policy has been transferred any claims that are being dealt with currently or that arise in the future will be dealt with by your new broker.Has EC3’s insolvency affected the validity of my policy?
The administration of EC3 should not have affected the validity of your policy. Each policy will be subject to its terms and conditions and to the extent you have any queries on your insurance coverage, we recommend that you contact your insurance provider directly or your new broker of record if you have nominated one.Is EC3 currently holding any of my money? How long for?
On the date of EC3’s entry into administration (25 November 2022), client money held by EC3 in its designated client accounts was pooled (“Client Money Pool”). The Administrators initially retained a small core team to assist with a reconciliation process of client monies comprising the Client Money Pool and have substantially drafted an application to Court which will seek approval of a proposed scheme as to how to distribute the Client Money Pool. Once the scheme of distribution is approved by the Court (in the form of a Court Order), with any modifications as deemed appropriate by the Court, those clients who are entitled to a distribution of the Client Money Pool will be contacted with regard to the return of client monies and be provided with a copy of the scheme of distribution and instructions for how they may submit their claim to the client monies comprising the Client Money Pool.
The Administrators' costs in dealing with client monies may be deducted from the Client Money Pool, and full details of such costs will be provided to the Court for review and approval.
If you believe EC3 is holding client monies owed to you, please contact the Administrators via email at EC3@frpadvisory.com.
Any client monies that are received by EC3 after the date of its entry into administration (“Post Appointment Funds”) do not form part of the Client Money Pool. Post-Appointment Funds will be returned to the client (to the extent not already done so) as soon as reasonably practicable, unless the Post-Appointment Funds received relate to an incomplete transaction for which an instruction was received prior to EC3’s entry into administration, in which case the relevant Post-Appointment Funds will be used to complete such transaction.Will I receive all my money?
The Administrators are unable at the present time to confirm whether clients with an entitlement to the Client Money Pool will receive the entirety of their claim until the proposed Scheme of Distribution is approved by the Court and certain steps under the proposed scheme of distribution have been completed.Will any shortfall be covered by the Financial Services Compensation Scheme (“FSCS”)
The FSCS exists to protect customers when financial service firms fail. It is the compensation scheme for customers of UK authorised financial services firms. It has eligibility criteria both in respect of the people and business who are covered, you can see more information on what the FSCS cover by following the below link:
https://www.fscs.org.uk/what-we-cover/
For eligible customers of GII firms such as EC3, cover is 100% for compulsory insurances, and 90% for all other types of insurance. You can read more about the FSCS and how to contact them by following the below links:
https://www.fscs.org.uk/https://www.fscs.org.uk/contact-us/
The Joint Administrators will work with the FSCS to determine the position and will provide further updates.
In the event of a query please contact EC3@frpadvisory.com.How long will the reconciliation and distribution process take?
The Administrators are unable to commence the scheme of distribution until it has received approval from the Court and the Administrators have received a Court Order. We are unable to confirm any timings at present, but further information will be provided in these FAQs if the scheme of distribution is approved by the Court.How long will the Administration last?
At present it is not possible to determine how long the Administration will last, particularly due to the further steps to be taken dealing with the client monies held by EC3. The Administration Order lasts for 12 months, unless extended with the consent of the company’s creditors, or by the Court. The Administration has already been extended with consent of the company’s creditors to 24 November 2024. An application to Court will be submitted prior to the expiry to further extend the Administration. The period of extension that will be requested has not yet been determined and the Administrators will consider this further closer to the time of the current expiry, but such extension requested will be for a period that will allow sufficient time for client monies comprising the Client Money Pool to be returned in accordance with the requisite process to be detailed in any scheme of distribution approved by a Court Order as referenced in the response to question 8.How do I contact the Administrators?
The Administrators have written to all clients whose contact details appear in EC3’s records to provide an update on the reconciliation process (see copy of letter above). Once the Court Order approving the scheme of distribution has been received, the Administrators will contact those clients who are entitled to a distribution separately. Any queries in the meantime should be sent to EC3@frpadvisory.com and the Administrators will endeavour to respond as soon as possible.If you are a client of EC3 and wish to receive notifications of updates, in the future, please sign up to the Creditors’ Portal at https://creditors.frpadvisory.com. In order to view the correspondence and documents, you will be asked for the following credentials.
• Case code: E1329LONCUST selected from the drop-down list that appears
• Unique ID: EC3CUSTOMERS