Michael Moore MP's (Lib Dem MP Roxburghshire) Repy letter

Posted 10/04/2009 - 14:34 by stan59man

Thank you for your letter of 31st March '09 re KSFIOM.
I am very sorry to hear that you have had savings in the Icelandic bank. The bank collapsed in the wake of the action taken by the UK Government to secure Kaupthing's UK depositors by transferring retail deposits under the 'Edge' brand to ING Direct and by placing the bank into adiministration, in effect freezing its remaining UK based assests, including those of KFSIOM.
My Colleagues Alan Beith MP, in his role as the Chairman of the Justice Select Committee, and Vince Cable MP, as Lib Dem Shadow Chancellor, have been pressing the Lord Chancellor, who has some responsibility for relations with the IOM, and the Chancellor of the Exchequer respectively to take an active role in pressing both the Icelandic and the IOM Governments to agree a scheme for repayment.
One complexity is that IOM savers are of different kinds, and the focus of responsibility is different in each case. Firstly, there are those with personal deposits in the IOM bank, some of whom did not chose to be there (e.g. because of the takeover of the Derbyshire BS by KFSIOM last December). Secondly, there are those whose investment is contained in a 'wrapper' from a leading insurance company, and the policy holder was almost certainly unaware of the significance of the choice make on his or her behalf. Whatever happens through the Government route, investors should question the judgement of their pension or insurance company, or independent financial advisor, if the decision to invest took place after downgrades and public warnings. If mis-selling can be established, then compensation may be payable through the Financial Ombudsman.
I have, as requested, written to the Chancellor about these issues. I will be in touch as soon as I have received a reply.

Yours sincerely

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