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Early day motion tabled by primary sponsor Bob Russell (Liberal Democrat), on Tuesday, 15 December 2009, in the House of Commons. It is signed by 63 members in total.

KAUPTHING SINGER & FRIEDLANDER ISLE OF MAN DEPOSITORS AND BONDHOLDERS

That this House recognises the decision by the Financial Services Authority (FSA) to revoke Kaupthing Singer & Friedlander UK's (KSF UK) deposit-taking licence led to the ultimate collapse of Kaupthing Singer & Friedlander Isle of Man (KSFIOM); notes that the decision taken by KSFIOM's directors to transfer over 50 per cent. of assets to KSF UK, which was approved by the Financial Supervision Commission following extensive consultation with the FSA, contravenes both UK and European banking practice; further recognises that some 3,000 KSFIOM depositors with savings above the ??50,000 compensation threshold, many of whom are British pensioners, are yet to be fully recompensed; further notes that British offshore depositors remit tax to the UK via income declaration or withholding tax and are therefore deserving of action by the Government; asks the Government to intervene directly and calls on the Isle of Man authorities to ensure all depositors receive full compensation, in line with UK depositors; further calls on the 10 life companies that mis-sold over 1,000 bondholders in KSFIOM, a product offering capital security, low risk and regular income potential, to re-evaluate their businesses and marketing practices and recompense policyholders accordingly; and requests that the Ministry of Justice further investigates whether the Isle of Man has the necessary skills, experience or processes in place to ensure effective self-regulation, as well as the conflicts of interest of those holding positions in the Isle of Man's political, judicial, regulatory bodies and financial services industry.

Amendments

The Early day motion has received an amendment.

KAUPTHING SINGER & FRIEDLANDER ISLE OF MAN DEPOSITORS AND BONDHOLDERS (474A1)
The Early day motion has received an amendment sponsored by Mark Todd (primary, Labour) and tabled on Tuesday, 5 January 2010. It has been signed by 4 members in total.
leave out from `following' to end and add `consultation with the FSA, contravenes both UK and European banking practice; further recognises that some 3,000 KSFIOM depositors with savings above the ??50,000 compensation threshold, many of whom are British pensioners, are yet to be fully recompensed; further notes that British offshore depositors remit tax to the UK via income declaration or withholding tax and calls on the Isle of Man authorities to ensure all depositors receive full compensation, in line with UK depositors; further calls on the 10 life companies that mis-sold over 1,000 bondholders in KSFIOM, a product offering capital security, low risk and regular income potential, to re-evaluate their businesses and marketing practices and recompense policyholders accordingly; and requests that the Isle of Man authorities investigate whether the Isle of Man has the necessary skills, experience or processes in place to ensure effective regulation, as well as the avoidance of conflicts of interest between those holding positions in the Isle of Man's political, judicial, regulatory bodies and the financial services industry.'.

Secondary information

Type
Early day motion
Reference
474 
474A1 
Session
2009-10
Other sponsors
Michael Clapham
Ann Cryer
Lord Field of Birkenhead
Mike Hancock
Mark Hunter
Subjects
Financial institutions
Link
View this Early day motion on www.parliament.uk