Does the Financial Ombudsman have any jurisdiction over liquidated banks?

  • Sheffield25
  • 17/10/08 31/05/09
  • a depositor
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Posted: Thu, 02/07/2009 - 14:06

Does anyone know about whether the Financial Omubudsman still has some limited jurisdiction over liquidated banks?

I presume that any matters of conflict with liquidated banks would have to be settled in a law court but I was wondering whether the Financial Ombudsman still has some jurisdiction, especially if the issue arose before the bank became liquidated.

Does anyone know?

Ap[ologies if this seems a stupid and naive question, I must admit a high degree of ignorance in these matters.

Sheffield25

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IoM Ombudsmen/KSF IOM

  • manx-person
  • 17/10/08 31/05/09
  • not a depositor
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  • Thu, 02/07/2009 - 14:11

Well the bank is regulated by the Financial Supervision Commission in the Isle of Man or rather the Joint Liquidators are: see http://www.fsc.gov.im/licenceholders/LicenceHolderDetails.aspx?holderid=...
Their license was granted on 29.5.09, albeit with some interesting section 7(3) exemptions.
So I think yes, the IOM ombudsmen would have jurisdiction http://www.gov.im/oft/ombudsman/


IOM Omubudsman

  • Sheffield25
  • 17/10/08 31/05/09
  • a depositor
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  • Thu, 02/07/2009 - 22:56

Many thanks.

As in the week of the 6th Oct 2008, I attempted to process a series of transactions (transferring my money to my linked external bank account), all of these transactions were subsequently reversed except for one (an FX conversion) which I feel is inconsistent and punitive as it has resulted in me suffering a financial loss, due to currency movements, of over £11k

An amount which does not justify incurring the prohibitive expense of a solicitor but one which is certainly worth fighting for.

Anyway, I hope that the Ombudsman can help.


IOM Ombudsmen

  • manx-person
  • 17/10/08 31/05/09
  • not a depositor
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  • Thu, 02/07/2009 - 23:18

I think there wouldn't be much to lose in making the application. The only thing I would say was that the license for the bank was suspended, and then the joint liquidators were granted a license.

So I would specify that the claim is against both the Bank, and the Joint liquidators, the former doesnt now have a license (but did) and the latter does now have a license.

If you received an award, there may be technical reasons which meant it couldn't be enforced, but I dont see that you have alot to lose in making an application.

I am not a lawyer, but the Ombudsmen route is not a court process, and as you say may not be cost effective to pursue given the amount of the claim.

Even if they try and put you off making a claim on the phone, I'd make one anyway

Good luck


Thank you

  • Sheffield25
  • 17/10/08 31/05/09
  • a depositor
  • Offline
  • Fri, 03/07/2009 - 11:23

Thank you, some good advice. I really appreciate you taking the time.

Many thanks,

Sheffield25


@sheffeld25

  • manx-person
  • 17/10/08 31/05/09
  • not a depositor
  • Offline
  • Sat, 04/07/2009 - 11:30

The other thing to think about is making a complaint to the FSC.
They don't have the power to make any financial award.
But they will ask the licenseholder to investigate the complaint, and they will use the complaint history against a licenseholder as part of their assessment of the fit and properness of the licenseholder and its resident officers and key staff.

Of course there will be those that say "its not worth making a complaint, they are conflicted etc" - and of course they are allowed to have that view and not obliged to make a complaint, but a substantiated complaint about particular actions or inactions will have to be considered properly by then.