ACTION STATIONS! -->> Write to the IOM Banks

  • Lucky Jim
  • 13/10/08 31/05/09
  • not a depositor
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Posted: Thu, 05/02/2009 - 11:13

One of our Strategic TASKS is to write to the IOM Banks to see what they say about how secure a deposit would be with them.

brokefirefly has kindly e-mailed me offering to ACTION this.

This is something that DAG members can do right away!

Would you like to contact one of the banks listed below to ask:

  1. if I were to deposit over *£100,000 with you, how secure would my money be ?
  2. what depositors' compensation scheme is there in the IOM?
  3. is it funded to pay out immediate compensation should your bank lose its licence ?
  4. what is your present Credit Rating ?
  5. Have you had any significant withdrawals following the collapse of KSFIOM ?
  6. ask any other question you think is relevant to the task
  • I suggest everyone gives a different arbitary figure
    (eg: £120,000.....£132,000.....£143,000...£154,000.....etc.)

Report back here under this Post what replies you receive!

Here all all the banks in the IOM.
I have marked * the ones I think we should target at this point in time.
You will need to Google to get the info for the bank you select (eg: Abbey National Isle of Man.....Barclays Bank Isle of Man....)

*Abbey National
AIB Bank (CI)
*Alliance & Leicester International Alliance & Leicester
* Anglo Irish Bank Corporation (I.O.M.)
Bank of Bermuda (Isle of Man)
* Bank of Ireland (I.O.M.)
*Bank of Scotland International
* Bank of Scotland
* Barclays Bank
Barclays Private Bank & Trust (Isle of Man)
Barclays Private Clients International
BNP Paribas Securities Services Custody Bank
BNP Paribas Trust Company (IOM)
* Bradford & Bingley International Britannia International
Cayman National Bank and Trust Company (Isle of Man)
*Celtic Bank
* Close Bank (Isle of Man)
Close Trustees (Isle of Man)
Conister Trust Duncan Lawrie (IOM)
Fairbairn Private Bank (IOM)
Habib European Bank
* HSBC Bank International
HSBC Custody Services (Isle of Man)
*Irish Nationwide (IOM)
Irish Permanent (IOM)
* Lloyds TSB Offshore
Merrill Lynch Bank and Trust Company (Cayman)
*Nationwide International
RBS Coutts Bank (Manx)
Standard Bank Isle of Man
* The Co-operative Bank
* Royal Bank of Scotland International (also trading as NatWest Offshore)
* The Royal Bank of Scotland
The Standard Bank of South Africa
Zurich Bank International

(to find this Post again easily, go to the menu bar & click on Forums>>'Action & Strategy'>>'ACTION STATIONS! -->> Write to the IOM Banks')

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Bank of Scotland Intnl in IoM

  • Anonymous
  • Offline
  • Fri, 06/02/2009 - 15:07

As well as the money in KSFIOM I have about 50k locked up in a Fixed Term Fixed Rate deposit account with the Bank of Scotland International in the IoM.
Unfortunately I can't remove the funds until it matures in September 09 but I've checked the small print. At present the funds up to £50k per depositor are covered by the IoM Depositors Compensation Scheme, but this has appeared in their blurb:

"Under the current scheme, maximum level of compensation per individual depositor will reduce from £50,000 to £20,000 with effect from 23 October 2009 for ALL depositors."

Guess what I'll be doing with those funds before 23 October...!

This is the relevant page ;

My fingers are well and truly crossed that this bank doesn't go belly-up too, because I wouldn't dare to hope for the DCS to reimburse me for both.


  • cottesmore
  • 21/10/08 16/07/12
  • a depositor
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  • Sat, 07/02/2009 - 17:42

Bless you for your confidence in any IOM banks at present.But,have you not been reading the threads here?
Get your money out as soon as you can.Monday morning will be just fine.Sooner,if you could!
My guess is you will lose the interest.Small beer in comparison to losing the lot!
Your call though.Just an opinion.Good luck.

Dear Prudence

  • IanAbroad
  • 11/10/08 13/08/09
  • a depositor
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  • Sat, 07/02/2009 - 18:20

hello Prudence, I don't want to scaremonger, but as the others have pointed out, the IoM are in no position to handle a further financial incident.
In fact, they are in no position to handle the current issues.
For the sake of sleeping easy, it may be better to take the hit and get it out.
As Obama has said, more banks will go to the wall. This may, or may not, be relevant to this side of the pond.
But the fact is, you are not an investor, you're a saver, so there should be no risk attached at all, however on the IoM, as we all know to our cost, this is not the case.

And while you're at it, if you do take the safe option, you could post your decision on the next available IoM Today news article.

IOM Banks

  • steveservaes
  • 13/10/08 31/05/09
  • unspecified
  • Offline
  • Mon, 09/02/2009 - 15:06

Generally speaking the banks in the IOM have parental guarantees.
These make the obligations of the IOM Banks obligations of the parents.
As long as the parents as of "systemic importance" in their host country - eg HBOS etc in UK or Anglo Irish in Ireland - then the need of the host country to prop them up means the IOM bits won't go bust as long as the UK or Irish governments are able to prop up the parents.
It would take a pretty cataclysmic scenario for UK or Ireland or similar to have to let one of their majors go under (although of course its theoretically possible).
Only then would the IOM bank go under - assuming it hadn't separated its affairs from its parent.
Then we are talking depositors compensation - and the question is will you get better compo in IOM or UK/Ireland. Perhaps if a systemically important bank goes this is indication that even the UK/Irish govts have reached the point they are skint. So they may not pay much compo (as time passes) even though at this stage they have been happy to pile on the national debt to feed the depositor compo/ prop-up frenzy.
Our prob with Krapthing is that our money was in a bank in a country with no lender of last resort - with a PG from a bank in another country with no bank of last resort. A bit like KSFIOM guaranteeing Landesbanki Guernsey. Although we now all know all about the world banking system we didn't realise the importance of this way back when we deposited. However, those well-paid chappies at IOM FSC should have done.
When are they going to accept that (i) they shouldn't have allowed a dodgy entity with no LoLastResort to set up here; (ii) once they had done that they shouldn't have allowed it to trumpet some back-of-fag-packet guarantee from another bank with no Lender of last resort and terrible CSD ratings as if it was any kind of security for deposits; (iii) once things became clear KSFIOM shouldn't send cash to Iceland they definitely shouldn't have allowed the PG to be referred to at all - since Iceland was obviously considered well dodgy at that time; (iv) before sending money into the UK they should have made the FSA/KSFUK and KSFIOM enter into an agreed system which was constantly monitored to ensure no hit on IOM; (v) they should also have obliged KSFIOM to make clear that it was doing this and that if things went wrong in KSFUK we'd be left whistling. And all this with Donald Gelling (ex head of the island) and one of the FSC boys on the board of directors. Looks to me more like the FSC were looking for any way for Krappers to keep trading than properly regulating them and pulling down the shutters when there were major problems for depositors. I think they had at least a duty to puta sign saying "KSFIOM IS WELL DODGY - INVEST AT OWN RISK - ALL THE MONEY GOES OFF TO A POTENTIALLY INSOLVENT BANK IN UK AND THE PARENT GUARANTEE COMES FROM A COMPANY WE DON'T ALLOW 'EM TO SEND MONEY TO IN A BANKRUPT ISLAND NEAR THE NORTH POLE" on KSFIOM's web-page. And as for Dockers and the other boys round the boardroom table - what were they thinking of?


  • Lucky Jim
  • 13/10/08 31/05/09
  • not a depositor
  • Offline
  • Sat, 07/02/2009 - 17:00

Hi Prudence... your post brought me out in a cold sweat !

I was in a similar position to you having a substantial amount tied up.
I asked "is there any way I can get out, even if it costs me?" the answer was "yes"... & it would cost me! I had to weigh up the price of paying the cost against the risks if the bank went bust. I paid the costs!

I wory about people in your position because though it is not the DAG's objective to bring down banks in the IOM, our activity in concert with others is giving a lot of bank staff sleepless nights right now!

A run on the banks is now a high risk. You need to ascertain whether your Bank has a parental guarantee from the UK that would vouchsafe your deposit. If not then you might want to inquire if you could get your money out & at what penalty price.

Keep us posted ..... & good luck !


  • wood
  • 12/10/08 30/05/13
  • a depositor
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  • Sat, 07/02/2009 - 19:51

There are also accounts with IOM banks that allow only discretionary closure before maturity- their discretion only! On death of holder for example. I know because I have one locked in there for several more months and being not quite dead yet was refused.

Prudence .... since I commented about your other deposit...

  • Lucky Jim
  • 13/10/08 31/05/09
  • not a depositor
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  • Sat, 07/02/2009 - 18:48

Prudence .... since I commented about your other deposit I have seen that today the IOM has received a tripple AAA Rating. (see Post under 'News' tab in navigation menu). You might sleep better over the weekend in this knowledge, but on Monday you may want to consider carefully your position. Banks can have AAA rating one day & then drop off the bottom of the scale the next !
Personally I would not touch any off-shore bank anywhere until it offers a cast iron guarantee that I will get my money back before it shuts up shop! My matress is knobbly but I sleep in comfort ! HSBC will offer me an on-shore account when I am next in the UK.

I paid the penalty and

  • IceCrusher
  • 14/10/08 25/10/11
  • a depositor
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  • Sat, 07/02/2009 - 17:46

I paid the penalty and shifted my few remaining quid out of the BoSI shortly after KSFIoM failed. Knowing what we know now, who would really risk losing more money and rely on the IoM Govt to deal with a 2nd bank failure when they cannot even sort out the 1st one - not even after 4 months! This Island should never have been permitted to run such a large Financial Offshore Centre processing billions of £ per year with no reliable bank of last resort to uphold the rights of depositors. The UK is, in the final analysis, responsible for the Islands sovereign debt, but the BoE has not been too quick reaching into its pockets to help out. Chancellor Darling must still be 'thinking long (and hard)' about the complications (or repercussions) of such a gesture... I wonder if he gave any thought to Lord Turner's assertion that it would 'not have been appropriate' to forewarn the FSC of the FSA's impending action to place KSFUK under Administration? Guess it was much more appropo to dump IoM retail depositors into the financial dwang than prewarn them that their money was about to be stolen - heaven forbid.

Thanks for the advice

  • Anonymous
  • Offline
  • Sun, 08/02/2009 - 14:03

Thanks for the advice everyone. Took me a while to get to sleep last night after reading that.

More stuff I've found on the BoS Intnl website, says:
"Closure is permitted after 6 months on payment of an early withdrawal charge" on the Fixed Rate accounts. We're only 3 weeks away from that.

"Bank of Scotland plc has provided a Letter of Comfort to the Jersey Financial Services Commission and the Isle of Man Financial Supervision Commission confirming that it will, subject to any legal or regulatory constraints, accept responsibility for the liabilities as they fall due of its subsidiary, Bank of Scotland International Limited. The Letter of Comfort represents the recognition by Bank of Scotland plc of the special nature of deposit taking business as carried on by Bank of Scotland International Limited and the moral obligation it has to support the operations of its subsidiary in the conduct of such business.”

Heartwarming, eh? I wonder what exactly those 'legal or regulatory constraints' might be... Also this assumes that BoS Plc doesn't go under.

I will be phoning them tomorrow to ask - if BoS Intnl loses its licence in the IOM, who repays the depositors, BoS Plc or are we relying on the IoM DCS? And how much is the 'early withdrawal charge'?

I'll report back.

Bank of Scotland Intnl's stance

  • Anonymous
  • Offline
  • Mon, 09/02/2009 - 12:52

A nice lady called Robin (Robyn?) at BoSI confirmed this morning that if they cease trading then parent company HBOS would "cover our balances", as stated in their legal info above. Only if HBOS failed as well then the IoM DCS would be called on. She confirmed that meant that HBOS would provide the money to reimburse depositors. HBOS is soon to be part of Lloyds-TSB which is 60% nationalised - while this is comforting it remains to be seen if the new management will guarantee IOM deposits in the same way as HBOS.
They will not permit the 1-year fixed rate account to be closed earlier than 6 months from start date, and the early withdrawal charge at that time would be about £323.

While we heard similar assurances from KSF, one would hope that the UK parent banks are in better shape than the Icelandic ones and that the UK Govt would not let Lloyds-TSB-HBOS go to the wall.

Prudence - right not to panic

  • DonaldC
  • 25/11/08 31/05/09
  • not a depositor
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  • Mon, 09/02/2009 - 14:25

Personally I think it would be unnecessary to suffer the penalty to take your money out or BoS Isle of Man.

I have money with Barclays IoM and am not intending to move it because ultimately where do I put it???

The reason the KSFIOM guarantee is not being guaranteed is not because of a flaw in the guarantee, but because the Icelandic government could not stop the parent from going bust.

In your case, you would only lose out if the UK govt were unable to prevent HBOS going under. I'm not saying that couldn't happen, just that there's not much point in closing the account and transferring the funds to an onshore account. Because it's the same risk.

But I certainly would be putting no faith in the IoM DCS to bail me out as a last resort.

Just received from the BOS

  • Sophie
  • 16/10/08 31/05/09
  • a depositor
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  • Mon, 09/02/2009 - 13:26

Dear Mr ---,

Thank you for your email.

Funds with the Bank of Scotland International are held in either Jersey or the Isle of Man, you would need to choose on your application form which of these jurisdictions you want. However, at this time only the States of Isle of Man offer a depositors compensation scheme which currently protects each depositor up to £50,000 per financial institution. Full details of this scheme can be found at our website with the link on the right hand side of the home page.

After the KSFIOM crash it was inevitable that we received some withdrawals, however, since this time we have found that our customers have been happy to return their funds to us.

We are now part of the Lloyds Banking Group so are now part of a much larger and stronger financial institution. Details of our credit rating can be found at the link

If we can be of any further assistance, please do not hesitate to contact us.

Claire Johnson | Internet Sales | Bank of Scotland International

+44 (0)1534 825085

I had an account with HBOS..

  • Lucky Jim
  • 13/10/08 31/05/09
  • not a depositor
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  • Mon, 09/02/2009 - 16:15

I had an account with HBOS isle of Man and all my bank statements & correspondence came from the IOM. It wasn't until the KSFIOM debacle that I found out that my money had in fact been placed in Jersey. Why? because I didn't tick the little box in the small print to say I wanted my deposit to be in the IOM. Daft -- that's where I had applied for an account, & little boxes or no little boxes that's where I expected it to be!

After the collapse of KSFIOM I spoke personally to the chap in charge of my acount in Jersey and he told me:
1. there was no depositors' compensation scheme in Jersey or Guernsey
2. HBOS UK would not vochsafe my deposit if HBOSJersey went bust.

His advise was that I should transfer my deposit to the IOM Branch because the IOM had a compensation scheme (lol!) but there would be a hefty penalty fee for doing so as I would be opening a new account with funds that had not gone to term in the Jersey bank. To cut a long story short I was out of there as fast as my broadband would allow...

It seems that the position has changed if LloydsTSB/HBOS on-shore are in fact guaranteeing depositis in their off-shore banks. We need to see if this is the case for other banks, especially those that have not been nationalised.

My God! Do you really

  • Hawkerman
  • 29/10/08 31/05/09
  • a depositor
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  • Mon, 09/02/2009 - 16:53

My God! Do you really believe, after all this, that if HBOS IOM or LLoydsTSB IOM went down the UK gov would pay you back??? The DCS has no money now so don't count on that either.
How much do you have to have your fingers burnt to scream ouch?
I would NEVER have anything to do with IOM or Jersey again. EVER!