FSCS protection for savers at Heritable and Kaupthing Singer and Friedlander

9th October 2008

The Financial Services Compensation Scheme (FSCS) is helping to safeguard retail deposits held by approximately 180,000 retail customers of Heritable and Kaupthing Singer & Friedlander.

The move comes after the Financial Services Authority announced yesterday (8th October) that the firms had gone into default.

Heritable is a subsidiary of Landsbanki Islands hf, and Kaupthing Singer & Friedlander is a banking subsidiary of Kaupthing Bank. Both banks were declared in default by the FSA, and the default declarations have triggered the protection of FSCS.

The Treasury has used its powers to transfer the accounts of the majority of Heritable's retail depositors, and the Edge depositors of Kaupthing to ING Direct. Eligible retail depositors whose accounts have not been transferred to ING Direct will be compensated through FSCS.

In the case of Kaupthing Singer & Friedlander, FSCS understands that the accounts of about 3,000 eligible retail depositors did not transfer to ING Direct. FSCS will contact these depositors directly in the next week with the help of the administrators and send them an application form to claim compensation.

In the case of Heritable, FSCS understands that less than 100 eligible retail depositor accounts have not transferred to ING Direct. FSCS is confirming the number and will be sending these account holders an application form to claim compensation early next week.

For more information, please check our website or call our helpline on 020 7892 7300.

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.