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Important Announcements

 

FSCS gears up to assist Icesave's UK branch customers

 

In the light of the current uncertainties, the Financial Services Compensation Scheme (FSCS) is today gearing up in case it needs to assist approximately 300,000 savers at Icesave.

Icesave is the UK branch of Landsbanki Islands hf (trading here under the registered name Icesave). It is an EEA bank that is authorised by the Fjármálaeftirlitið (FME), the financial services regulator in Iceland. The Financial Services Authority in the UK has reported that Icesave is now expected to go into insolvency proceedings in Iceland and this would trigger an FSCS default.

Eligible savers with Icesave are protected by the Icelandic Depositors' and Investors' Guarantee Fund (IDIGF), up to a limit of the first 20,887 euros of their deposits. As an Icelandic bank Icesave is not automatically a member of the FSCS, but it opted to become a 'top-up' member. This means that eligible retail savers with Icesave's UK branch whose savings exceed the Icelandic limit would benefit from top-up compensation from the FSCS covering the amount over the Icelandic limit up to the new FSCS compensation limit for deposits of £50,000.

If the default is triggered as expected, FSCS will contact all UK savers directly with details of how to apply for compensation. Further announcements will follow and we will keep this page updated.

Please watch our website for more information or call our helpline on 0845 7300131.

Please note that due to higher than usual demand it may take us longer to answer your calls and emails. We apologise for any inconvenience this may cause.

 

New compensation limit for deposits

The Financial Services Authority announced today (3 October 2008) that the FSCS compensation limit for deposits is increasing to £50,000 with effect from 7 October 2008.

The new limit will apply to each depositor for the total of deposits they hold with an organisation regardless of how many accounts they hold or whether they are a single or joint account holder. In the case of a joint account, FSCS will assume that the money in the account is split equally between account holders, unless evidence shows otherwise.

 

Bradford & Bingley

The government announced today (29 September 2008) that the retail deposits of Bradford & Bingley have been sold to Abbey to protect the savings of more than 2.5m savers with the bank.

Customers of the bank can access their accounts in the normal way through branches, the internet and telephone banking. The bank will continue to operate and its staff will continue to provide a full banking service to their retail customers.

All your account details, facilities and terms remain the same and you do not need to do anything. You do not need to make a claim with the Financial Services Compensation Scheme.

All amounts held by retail depositors in Bradford & Bingley have been safeguarded by being transferred to Abbey, not just the first £35,000 of a customer's deposits, which is ordinarily protected by the FSCS.

 

About us

FSCS is the UK's compensation fund of last resort for customers of financial services firms authorised by the Financial Services Authority or previous financial regulators. This means that FSCS can pay compensation to consumers if an authorised financial services firm is unable, or likely to be unable, to pay claims against it and so is in "default."

FSCS protects:

  • Deposits
  • Life and general insurance firms
  • Investment business (on or after 28 August 1988)
  • Home finance (e.g. mortgage) advice and arranging (on or after 31 October 2004)
  • General insurance policies advice and arranging (on or after 14 January 2005)

There are limits on the amount of compensation that we can pay.

How to claim

 

Can we help with your claim?

Why not try our Can we Help? flowchart to help you find out whether FSCS may be able to help with your claim.

You can also download a copy of our consumer guide, How we can help, which contains a print version of the flowchart and provides more information about our role and how we may be able to help with claims for compensation.

Frequently asked questions


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