Written question asked by Lord Laird (Ulster Unionist Party), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Wednesday, 20 July 2011.

Banking: Iceland

Question: To ask Her Majesty’s Government, further to the Written Answer by Lord Sassoon on 7 July (WA 90), whether they will ask the Financial Services Compensation Scheme (FSCS) to cease pressing those with unclaimed deposits from failed Icelandic banks to reclaim their money; how much in each of the failed banks has been deemed ineligible for compensation by the FSCS; and whether the Chancellor of the Exchequer has the power to withdraw the offer of repayment to those with deposits of over £50,000 that have not sought recompense.

Answer: Contacting potential claimants in a failed institution is a matter for the Financial Services Compensation Scheme (FSCS), which operates independently from Government. The Government do not hold information on ineligible deposits, which is also a matter for the FSCS. The previous Chancellor of the Exchequer announced that retail deposit holders in the failed Icelandic banks would be compensated in full. The Government intend to review this position once the banks' legal liability to customers ends.

Secondary information

Type: Written question
Reference: 11087; 729 c297WA
Session: 2010-12
Related items: Banking: Iceland
Thursday, 7 July 2011
Written questions
House of Lords; Banking: Iceland
Thursday, 20 October 2011
Written questions
House of Lords
Subjects: Compensation Banks Insolvency Iceland Financial Services Compensation Scheme
Link: View this Written question on www.publications.parliament.uk