Assignment of rights to the DCS / IoMG

  • emporiolibelula
  • 11/02/09 31/05/09
  • a depositor
  • Offline
Posted: Mon, 03/08/2009 - 23:00

Having read the regulations put inplace by the Isle of Man Government "Financial Services Act 2008 - Compensation of Depositors Regulations 2008" posted on the DCS.im website, nowhere in this act of law does it grant permision to the / a scheme manager to write into a scheme of compensation the requirement for claimants to assign the rights of their deposit to the Scheme Manager. Therefore, leaving the depositor open to undue risk in the case of deposits over the 50k threshold. The second Early Payment scheme, put in place after the winding up order, (a scheme drawn up, specific to Kaupthing Singer Friedlander IoM) includes this measure, which seems to have set a standard that the new DCS scheme manager wishes to follow - without due license from the law.

The question then is why should the depositors - already hard done by - be further put to task in re-claiming their deposits. The request of this assignment of rights is not neccessary but conveniently allows the Scheme manager to vote on behalf of all those signed up - one hopes in their best interests!

Please someone tell me!

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Update

  • emporiolibelula
  • 11/02/09 31/05/09
  • a depositor
  • Offline
  • Tue, 04/08/2009 - 10:43

In fact section 16 DOES include (in reference to participants - read banking institutions) recourse to an assignment of rights BUT, does the DCS claim process overstep the allowances made in section 16 of the regulations.

It seems that forsaking any rights to your debt with the Liquidation could work in the Government's favour, should any issues with the Liquidation arise - i.e. some new arrangement, a suit of neglegence against the Government and its regulatory deficiencies etc.

It seems an unwise risk and an assumption that only less than 100% return is now possible - perhaps this might not be the case if some new information came to light with reference to; the parental guarantee, KSFUK's liquidation, some as yet unknown culpability on the part of the Isle of Man Government that might require it to compensate in full - as damages.