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Banking: Iceland

Answer

Oversight of Landsbanki Guernsey and Kaupthing, Singer and Friedlander Isle of Man (KSF IoM) is the responsibility of the Guernsey Financial Supervision Commission and the Isle of Man's Financial Supervision Commission, respectively. Accordingly, arrangements for depositors in banks in the Isle of Man and Guernsey are a matter for the Governments of the Isle of Man and Guernsey. Landsbanki Guernsey On 26 November 2008 the States of Guernsey approved the immediate creation of a depositor compensation scheme for Guernsey. However, this scheme does not have retrospective effect and therefore does not apply to the depositors of Landsbanki Guernsey. Instead, as that institution has been placed in administration, the depositors are creditors and will be treated in accordance with normal administration procedures. It appears that the administrator has already made a part payment to the depositors. Any further payments are a matter for Landsbanki Guernsey's administrators. KSF IoM As KSF IoM participated in the Isle of Man's depositors compensation scheme (DCS) and has been placed into liquidation, depositors with KSF IoM may be eligible for payouts from the DCS. KSF IoM had deposits with its sister company KSF UK at the time of KSF UK entering into administration. Under UK insolvency law, KSF IoM ranks like any other creditor in the administration of KSF UK. As part of the administration process, as is usual, a moratorium is in place on the enforcement by creditors of claims against KSF UK. Creditors of KSF UK will be treated in accordance with the administration procedures and may receive a payment from the administrator in the normal way.

Secondary information

Type

Written question

Reference

1763; 717 c77-8WA

Session

2009-10

Subjects

Compensation Bank services Insolvency Isle of Man Guernsey Landsbanki Kaupthing Singer and Friedlander

Link

View this Written question on www.publications.parliament.uk