FSCS update for Icesave customers

10th October 2008

As you know, Icesave (the UK branch of the Icelandic bank Landsbanki) was declared in default by the Financial Services Authority on Wednesday and the Chancellor of the Exchequer announced on the same day that he had put in place arrangements to ensure that no retail depositor would lose any money as a result of the closure of Icesave.

Since Wednesday, FSCS and the other UK authorities involved have been working together and with the Icelandic authorities to establish the best process for getting you your compensation entitlement, having regard to the Icelandic Fund's responsibilities, our own obligations and the Chancellor's announcement. Discussions will be continuing over the coming days on the most efficient way forward.

Many callers to our helplines have enquired whether they will need to make separate applications - to Iceland, to ourselves and to the Government. We remain hopeful that we will be able to reach agreement on arrangements which will mean that you only have to deal directly with one of the three organisations, the FSCS.

We will post a further update on our website as soon as we can, and expect to be able to give you firm news by the end of next week. But there is no need to take any action at this time.

Our focus is on making sure that those entitled to our protection get our help as quickly and efficiently as possible. We are committed to finding the best way of delivering FSCS protection to you and relieving you of the worry we know you are experiencing. Meanwhile, HM Treasury has given reassurance that savers' money is safe and secure.

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.