General Discussions

  • ng
  • 11/10/08 31/12/20
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Posted: Fri, 10/10/2008 - 05:39

Any general chat about what is going on that doesn't fall into any other categories.

IMPORTANT: How to post links to related News on other sites

As of 21/Oct/08 we have a searchable news archive. Site editors (and anybody else who wants to help) now have the mammoth task of find and re-posting all relevant links that were posted in forums and re-posting as a news item into the archive.

It would be appreciated if you didn't make the task even bigger than it currently is.

Please post news items using the Create new News item link near top of right side-bar.

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Remember that people who

  • go mann
  • 10/10/08 31/05/09
  • a depositor
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  • Sun, 12/10/2008 - 14:39

Remember that people who bank/save offshore are not rich tax-evaders ... they're usually just ordinary people either retired or working abroad who can't open accounts in the UK.

Good luck ... I'll try to tune in.


Press advice

  • thesunnysouth
  • 10/10/08 31/05/09
  • unspecified
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  • Sun, 12/10/2008 - 14:14

Hi Jenren,
I see no harm in highlighting the fact that the majority of savers are elderly, hard working people who pay tax to the UK and that the bank was solvent had not the UK government froze the assets of HSF in London.
Keep the debate fresh and therefore keep pressure on people to remember the IoM investors.


Hi Jenren I work for a

  • Monkeyface3604
  • 10/10/08 31/05/09
  • unspecified
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  • Sun, 12/10/2008 - 14:14

Hi Jenren

I work for a serving british police officer, currently in missing persons. Part of my training is in media strategies, altjough the use of it in my job is somewhat different to this i can advice on the basic principles and what we need to be mindful of.
I am not to sure how to set up my account so people can contact me but if someone can talk me though it i will endevour to assist and discuss


Jen I have e mailed you my

  • Monkeyface3604
  • 10/10/08 31/05/09
  • unspecified
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  • Sun, 12/10/2008 - 14:38

Jen

I have e mailed you my phone number, give me a bell in about 30 mins and we can talk


contact users

  • Pat
  • 10/10/08 30/11/12
  • unspecified
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  • Sun, 12/10/2008 - 14:37

Hi, Monkeyface - click on 'My Account' on the menu on the left, then click on 'edit' along the top and then make sure the ' personal contact form' box is checked. then click on save at the bottom of the page.

hope this helps as I think we should get the stories to the media and garner the support of anyone who will listen.


BBC Isle of Man

  • Anonymous
  • Offline
  • Sun, 12/10/2008 - 13:55

The BBC IoM webpage is at http://www.bbc.co.uk/isleofman/ and is another source of media news.

It contains a link to a story about the IoM banking situation, last updated 11 October 2008 15:24. The story includes:

John Aspden, chief executive of the island's Financial Supervision Commission, confirmed to Money Box that the scheme will apply to customers of Kaupthing Singer & Friendlander (Isle of Man).

"The compensation scheme does apply up to £50,000.

"In addition savers will get a share of proceeds of any liquidation, but that will depend on the outcome."


Assets Seized by Government = £4bn , Deposits = £3bn

  • JS
  • 10/10/08 31/05/09
  • unspecified
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  • Sun, 12/10/2008 - 13:40

Assuming we filthy off-shore

  • go mann
  • 10/10/08 31/05/09
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  • Sun, 12/10/2008 - 13:58

Assuming we filthy off-shore residents are included in any deal, of course! I saw somewhere that Darling Darling was trying to wash his hands of those living in the Channel Islands and IOM, and those working/living in REALLY foreign places.

What a wonderful Government the UK has ... thank God I was able to escape.


Voting for a spokesperson (or spokespeople)

  • AJM UAE
  • 11/10/08 31/05/09
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  • Sun, 12/10/2008 - 13:44

I urge NG to set up the poll suggested by myself and others earlier as to whether we need a spokesperson (or a small group of spokespeople) to represent us. A perfect example of how this person could represent us would be in making contact with the UK government to ensure that they include IoM customers in their negotiations over the return of the GBP 4 Billion to Iceland. Any progress on setting up this poll, NG?


Spokesperson poll

  • ng
  • 11/10/08 31/12/20
  • a depositor
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  • Sun, 12/10/2008 - 14:05

Done - here http://www.ksfiomdepositors.com/cms/?q=node/42 - will also appear on the front page of the site (for now)

Re. the time limit... The poll is set to close in 24 hours - the systems doesn't let me set less than 1 day as a limit. But, I can manually switch it off when 20:00 GMT comes - is that enough time? (Might need to vote on that decision :)


Spokesperson/s

  • tubefly
  • 10/10/08 31/05/09
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  • Sun, 12/10/2008 - 13:51

Great idea - what is the choronology vote then accept nomination of put forward nomination then vote? ng will need this to design the web system.


Voting for spokesperson

  • AJM UAE
  • 11/10/08 31/05/09
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  • Sun, 12/10/2008 - 13:56

I thought we should vote on the idea of having a spokesperson/group of spokespeople in principle first. If/when we come to an agreement then we can nominate. I earlier suggested something like this:

For account holders only: should we have a spokesperson/small group of spokespeople?

Yes
No
Abstain

Votes to be in by a deadline e.g. 20:00 GMT today


EVERYBODY PLEASE READ THIS! (email addresses)

  • ng
  • 11/10/08 31/12/20
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  • Sun, 12/10/2008 - 13:00

Please do not post your email address in the forums.

All users now have a "contact" form - click on my account (menu on the left) scroll down to Personal contact form

It is currently DISABLED by default. Enable it if you do want other users to be able to contact you. They will not get your email address - their message will come to you as email from this site, nonetheless you may prefer to disable the contact form.

To contact somebody else, click on their user name in a posting, then the Contact tab.

More detailed info will be posted shortly.

*** Seems "Contact" tab is not currently visible/accessible - trying to fix ***


EVERYBODY PLEASE READ THIS! (email addresses)

  • ng
  • 11/10/08 31/12/20
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  • Sun, 12/10/2008 - 13:36

Correction - it's disabled by default - you will need to enable it if you want it.


NG - I don't have

  • occams razor
  • 10/10/08 31/05/09
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  • Sun, 12/10/2008 - 13:13

NG - I don't have a my account menu on the left nor can click on user name in a posting. I am logged in. I seem to remember unchecking a box or two in error at the earlier stages of this forum, which made some menus disappear, I think one called Block > Navigation. Could you kindly check my account properties to see if all is correct?


Thanks - fixing now

  • ng
  • 11/10/08 31/12/20
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  • Sun, 12/10/2008 - 13:20

The first one is because you must have turned off the "Navigation" block - I've turned it back on for you.

The second one was an access-control setting which was wrong and I've now fixed.


Thanks. I've got the menus

  • occams razor
  • 10/10/08 31/05/09
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  • Sun, 12/10/2008 - 13:32

Thanks. I've got the menus now, but don't see any contact tab when I click on a name e.g. yours.
Sorry for the trouble, great work on site improvements the last 24hrs btw.


Please see this post - I need your input

  • ng
  • 11/10/08 31/12/20
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If you are replying to some

  • occams razor
  • 10/10/08 31/05/09
  • a depositor
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  • Sun, 12/10/2008 - 12:42

If you are replying to some else's comment, please hit the "reply" link directly below that particular comment.
If you hit the "add new comment" link instead, it creates a new post that isn't linked to the original, which confuses everyone and clutters up the forum.
Thanks.


sami

  • Ray
  • 10/10/08 31/05/09
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  • Sun, 12/10/2008 - 12:38

Why should we "relax a little"? These frozen assets currently apply to onshore depositors only, not to KSFIOM depositors.


Frozen Assets

  • frozenrover
  • 11/10/08 31/05/09
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  • Sun, 12/10/2008 - 13:05

Agree Ray, but some of these assets must be due back to the IOM -
if previous comments are correct.
My concern is that the UK does a deal with Iceland to release these in return for guarantees that will not include KSF IOM.
Are we sure we have a stong enough representation within the UK treasury discussions ?


My apologies ... I got

  • go mann
  • 10/10/08 31/05/09
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  • Sun, 12/10/2008 - 12:51

My apologies ... I got confused, as I keep forgetting that this Group includes all depositors. I migrated here from moneysupermarket, where we had a dedicated thread for the "Offshore, Kaupthing Edge IOM" community.

I continue to live in hope that the final arrangements will not leave the offshore community out in the cold - a point I have made by email to my UK MP.


Please relax a little and read this article...

  • sami
  • 10/10/08 31/05/09
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Further thoughts

  • sami
  • 10/10/08 31/05/09
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  • Sun, 12/10/2008 - 12:40

I haven't been as active as I would like, by way of posting on this forum, but like many of here, I have the principle part of my life savings at stake. My life will never be the same if affected by this catastrophe.

However, I have given things much thought and I do feel that as a group we should try to relax more and aim to go through the proper processes, in due course. At the moment however, we have good news that talks in Iceland have progressed and that the British Government have successfully secured £4 bn of Icelandic assets.

I too have been through ups and downs reading all the stories and I do feel that on balance our outcome should be favourable. I say this because of three things really:

  1. Iceland has stated that it intends to honour all debts. Some say this isn't the case, but it has been reported in the news already.

  2. Isle of Man's international interests are represented by the British Government. It is therefore the British Government's duty to do so, and whilst they are indeed negotiating the return of British depositors' funds, their obligation to Isle of Man will not be forgotten.

  3. I have just reported separately before this post, the news on the Isle of Man web site, stating that the British Government have now seized £4 bn assets - as they say, more than enough to pay British depositors.

My heart has been with all fellow depositors on this forum during the past three days. I have contemplated the end, and felt that my whole life had been destroyed. God bless you all and I hope this thing will be resolved and that we will all come out much stronger as a result of it. S.


That sounds somewhat better,

  • go mann
  • 10/10/08 31/05/09
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  • Sun, 12/10/2008 - 12:38

That sounds somewhat better, although I shall wait a while before opening anything other than a everyday bottle!

I hope that gives some comfort to those in a much worse position than mine.


Guardian article on offshore havens

  • Anonymous
  • Offline
  • Sun, 12/10/2008 - 12:24

http://www.guardian.co.uk/money/2008/oct/11/savings-banks3
Mostly concerns the Channel Islands, but mentions Isle of Man.
I dislike the bit about tax dodgers and the super rich.


Agree with skintagainnow ...

  • go mann
  • 10/10/08 31/05/09
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  • Sun, 12/10/2008 - 12:43

Agree with skintagainnow ... the fact that I now live in Jersey [having blown most of my capital to purchase property here, to be with our surviving family members] obviously makes me [a] super-rich and/or [b] a tax-evader. It's just something you have to get used to [as you weave through traffic dodging all the Bentleys and the like ... presumably some of which are owned by members of the Finance Industry].


That's the stigma

  • skintagainnow
  • 10/10/08 31/05/09
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  • Sun, 12/10/2008 - 12:28

That's the stigma we all have to face, too many people still belive that offshore accounts are only for super rich and tax evasion.


Sleepless in Sarasota

  • Wanda
  • 12/10/08 31/08/09
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  • Sun, 12/10/2008 - 12:00

As a newcomer to this forum I first want to say THANK YOU to whoever set it up. Now I have somewhere to head to during all those sleepless nights I'm experiencing whilst pondering my fate. At the ripe old age of 55, my life savings were purloined (a much nice word than "stolen" dontcha think?) by KSF after I had invested, in all good faith, into the Derbyshire Building Society. The inspiration for my user name came as I "Wanda" how on earth I could have let that happen! On the bright side...(there is one?) it has brought me to this place and it's comforting to know that there are other hardworking, intelligent people out there who have also been duped. United we stand!


Comment from KSF Chairman

  • Diver
  • 11/10/08 31/05/09
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  • Sun, 12/10/2008 - 11:30

Interesting to note that the Chaiman of KSF has 'accused' British savers of confusing KSF with other troubled Icelandic Banks and rushing to remove deposits (can you blame them???). He went on to say that KSF was in a 'strong' position. Right...well if that's his position then he'll be quite happy to agree that the Icelandic Government should use that 'strong' positon to repay all deposits that KSF Hf had guaranteed! I'm not holding my breath!


We are many - around 460 user registrations here already

  • ng
  • 11/10/08 31/12/20
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  • Sun, 12/10/2008 - 11:16

More info here.


Withdrawals

  • sjt
  • 12/10/08 31/05/09
  • unspecified
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  • Sun, 12/10/2008 - 11:10

I withdrew money on Friday 3rd Oct via BACS and again on the Saturday (BACS) and both withdrawals arrived at my UK account on the Monday 6th Oct . Not large sums though


1st October ??????

  • justr
  • 12/10/08 31/05/09
  • unspecified
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  • Sun, 12/10/2008 - 10:54

I telephoned on 1st October to withdraw funds by BACS and also sent a confirmation letter first class that day. KSF have confirmed that they received the letter. I keep reading about peoples money not being sent on 5th 6th etc, what chance did they have by then if I did not receive anything from the 1st. I feel sick when I read some of the stories on this site, does anybody in power really understand what has happened, it isn't the want of money, it is hundreds of lives ruined.


So this is how it all went wrong then

  • podather
  • 10/10/08 31/05/09
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KSF (IOM) in Administration or Liquidation

  • Diver
  • 11/10/08 31/05/09
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  • Sun, 12/10/2008 - 09:36

Apologies if I'm missing something here but I'm now more confused than ever. A number of posts on here mention that KSF (IOM) is in administration whereas according to the message on their website they've appointed/are looking to appoint a liquidator. I could well be wrong here but aren't the two different?

My understanding is that an administrator is brought in by a company to protect it from its creditors whilst it attempts to either get itself back on its feet or to engineer a sale as a going goncern. On the other hand a liquidator (again by my understanding) is brought in by creditors to sell off any assets to raise as much money as possible for said creditors (usually pennies in the pound if anything at all). Can anyone clarify the exact position we're in here please?


Provisional Liquidation

  • DXB
  • 12/10/08 31/05/09
  • unspecified
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  • Sun, 12/10/2008 - 09:47

It's a 'provisional' liquidation. Not sure exactly what that means under Manx law, but it presumably entails a moratorium (freeze on trading activities) to assess the bank's situation before either selling operations as going concerns or formally winding the bank up.
The former is likely to be the more desirable outcome for depositors, as the bank presumably does not own sufficient assets to cover all its deposit liabilities.
Just to clarify for the benefit of other posters, there can be no 'run' on the bank during the moratorium because all its assets are frozen - which is why we have no access to our accounts.


Provisional liquidation

  • cold-dose
  • 11/10/08 31/05/09
  • unspecified
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  • Sun, 12/10/2008 - 15:30

The KSF(IOM) board voted to ask the court to wind their company up. A provisional liquidator can be appointed whilst a winding-up order is pending before the courts to ensure the assets and records of a company are protected.

If the court decides to agree the winding-up petition then the company will go into liquidation. Alternatively, if the court rejects the request, the the provisional liquidator unfreezes all the assets and returns them to the control of the directors.

In summary, at the moment it is all just frozen, with enquiries being made to track down any further assets (e.g. monies owed by other banks) or records. The actual winding-up will presumably start after the 24 October - it is difficult to see the court rejecting a request for winding-up that has been made by the company's own directors.


Definition

  • tubefly
  • 10/10/08 31/05/09
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  • Sun, 12/10/2008 - 09:56

Does the IOM have a term or definition: Administration? .....is it using Provisional Liquidation because it means something else?


Article today's Daily Mail (re. personal story & IOM)

  • C_south_africa
  • 10/10/08 31/05/09
  • a depositor
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  • Sun, 12/10/2008 - 09:26

http://www.dailymail.co.uk/news/article-1076712/The-British-widow-lost-6...

The British widow who lost her £600,000 life savings in Icelandic offshore trap
By Richard Creasy and Christopher Leake

Last updated at 9:33 AM on 12th October 2008

An 87-year-old widow has lost almost her entire £600,000 life savings because of the Icelandic banking crash.

Ruth Burridge worked seven days a week for more than 20 years running a seaside pub to put aside the cash in a Derbyshire Building Society offshore deposit account.

But now her nest-egg will virtually disappear because the Derbyshire’s offshore accounts were taken over last November by Kaupthing, the Icelandic bank that collapsed last week.

Thousands more British investors with offshore accounts could face huge losses, too.

Neither Jersey nor Guernsey has protection schemes for UK citizens.
Under the depositors’ scheme run by the Isle of Man Financial Services Commission, investors in the accounts run by Kaupthing have a maximum protection of £50,000 each.

Mrs Burridge will now be forced to sell her idyllic £500,000 home in the village of Fishbourne, near Chichester, West Sussex, and is likely to spend the rest of her days in a care home.

She said: ‘I can’t believe this is happening. I’ve worked hard all my life and never asked anyone for a penny. I put my money in a building society I thought was safe.’

From 1950 until 1972, Mrs Burridge ran the clifftop Tillywhim Inn in Swanage, Dorset.


Email from my IFA

  • humphrey
  • 10/10/08 01/03/11
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  • Sun, 12/10/2008 - 09:20

I don’t think anything is certain as yet, there’s so much going on this weekend with the G7 and IMF and Iceland plc starts negotiations with Russia over its 4billion Euro loan on Tuesday.

I did hear from one of the Offshore Bond providers on Friday that they believe Kaupthing Isle of Man was put into administration due to events with Kaupthing UK and ING and to avoid a run on deposits. Administration gives them 30 days of breathing space and an independent look at assets and liabilities, which, according to the Offshore Bond provider, are expected to prove positive, i.e. that assets match deposits (and that is without recourse to the parent Company).

Having said that, at this stage nobody really knows and until the G7, IMF and Iceland plc have sorted themselves out nothing will be certain.

In the meantime, I expect the press etc to continue with their “negative” comments. For example Sky News have been running a “lets destroy people’s confidence in pensions” morning today…

I will of course let you know when we hear something “concrete” and not based on hearsay.


OFFSHORE BOND PROVIDER

  • mikepapa
  • 10/10/08 n/a (free)
  • a depositor
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  • Sun, 12/10/2008 - 12:01

IF....." assets match deposits " ........then things may look a little better, if they are accessable.
If this is the case, I am suprised that the PCW Administator has not, as far as I am aware, stated this.

"Offshore Bond Provider" is a new one on me, who are they? Can you expalin a little more please?"

Thanks


off shore bond provider

  • humphrey
  • 10/10/08 01/03/11
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  • Sun, 12/10/2008 - 13:03

I am resident in the UK, I sold my company in March to "avoid" the recession that I believed was on its way. I placed most of my money in an off shore bond that meant that as long as I didn't remove 5% per year then the tax owed to UK gov't stayed in the bond to earn interest, I would still pay all my tax but at a later date when I cashede in the capital within the bond. The two bond providers I used were Norwich Union and Royal Skandia, the banks I used were KSF IOM and some Irish banks. Hope this clarifies my IFA's email above.


Wind-up / Administration or Liquidation

  • tubefly
  • 10/10/08 31/05/09
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  • Sun, 12/10/2008 - 09:52

All, Diver raised the point that it is not clear what state the company is currently in - the release noted that the company was being Wound Up - so is this Administration or Liquidation? I assume administration.


Humphrey that is my

  • expat
  • 10/10/08 31/05/09
  • unspecified
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  • Sun, 12/10/2008 - 09:43

Humphrey that is my understanding of the situation as well


Assets match deposits

  • frozenrover
  • 11/10/08 31/05/09
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  • Sun, 12/10/2008 - 11:30

Ex pat -
You mention your understanding of the situation descrbed in Humphreys email of 10.20 today - is this the comment from his bond provider stating that they believed that assets of KSFIOM match deposits without recourse to the parent ?

Excuse my ignorance but if this is the case would the provisional liquidator not have mentioned this in last weeks meeting ?

If correct though -are matters not looking alittle brighter


This is my understanding from

  • occams razor
  • 10/10/08 31/05/09
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  • Sun, 12/10/2008 - 10:35

This is my understanding from here:

http://www.gov.im/lib/docs/fsc/PressReleases/kaupthingsingerqanda.pdf

"On the evening of 8 October, following consultation with the Commission, the
Board of KSF (IOM) resolved that it should apply for the company to be wound up.
At that point KSF (IOM) stopped trading and the Commission suspended KSF’s
banking licence.
On the morning of 9 October, a joint petition was presented to the High Court by
KSF (IOM) and the Commission for the appointment of a “liquidator provisionally”.
Michael Simpson of Pricewaterhouse Coopers, 60 Circular Road, Douglas, Isle of
Man, IM1 1SA was appointed by the Court
...
The process is not automatic. Winding-up would require a separate order of the
Court, at which point a liquidator would be appointed. The petition for winding-up
has been adjourned to 24 October."

So current status would be KSFIOM has stopped trading, had its banking licence suspended, but technically is not in liquidation or "winding-up" yet, until the Court orders it on the 24th. That's purely my interpretation from these public documents.


Yes, that concurs with the

  • Toast8
  • 11/10/08 31/05/09
  • unspecified
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  • Sun, 12/10/2008 - 11:51

Yes, that concurs with the discussion I had with the FSC on Friday. They said the petition hearing was set aside and adjourned until 24 Oct to enable the new provision to kick in not retrospectively. Moreover, the liquidator in accordance with company law owes a fiduciary duty to creditors to explore all opportunities to maximium value prior to wind-up. A sale or transfer of undertaking represents this i.e as a going concern to a 3rd party, as opposed to dissolution of assets.


Parental Guarantee

  • dclf1947
  • 10/10/08 31/08/09
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  • Sun, 12/10/2008 - 09:12

I notice on the "Important Customer Announcement" letter from the Derbyshire on the 20 November, 2007 that the wording is very different and in my mind far more powerful. The letter was signed both by Derbyshire (IOM) Director Fiona Passay and Aidan Doherty, Director of KSF (IOM) Limited. The wording is: "Kaupthing Bank hf having given an irrevocable and binding undertaking to ensure that, while Kaupthing Singer & Friedlander (Isle of Man) Limited remains its subsidiary, it will at all times be able to discharge its financial obligations as they fall due".
If you consider this helpful I can always scan it.


Media - let's have a separate section please - if poss?

  • C_south_africa
  • 10/10/08 31/05/09
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  • Sun, 12/10/2008 - 08:43

I think we need a "tab" on the top of these pages leading to a section where people can post links to media articles.

The name of the medium could be in the subject line and the link in another line.

The comments section below that could be reserved for a precis of the news contained in that article/news report

Do you think it a good idea?


News article today UK Sunday Times (re IOM)

  • C_south_africa
  • 10/10/08 31/05/09
  • a depositor
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  • Sun, 12/10/2008 - 09:48

http://www.timesonline.co.uk/tol/money/investment/article4925885.ece

From The Sunday TimesOctober 12, 2008

Offshore bondholders left in the lurch by liquidation
Icelandic banking crisis hits British investors' nest eggs

...................................................................................
Elizabeth Colman

Wealthier investors who have stashed their cash in offshore bonds could lose their nest eggs after the schemes became embroiled in the Icelandic banking crisis.

British investors have as much as £5 billion in the schemes, most of which have a minimum investment of £100,000 and are often used by people who intend to move or retire abroad.

Aegon Scottish Equitable International has told financial planners it cannot guarantee the investments of some of its offshore bondholders, which were invested in Kaupthing Singer & Friedlander Isle of Man, which went into liquidation last week.

The bank is a subsidiary of Iceland’s Kaupthing, which was nationalised by the Icelandic government.

Investors have been left at the mercy of the liquidator after the government failed to commit to guaranteeing deposits in the offshore bank.

It is understood offshore bonds provided by Axa and Canada Life are also invested in Kaupthing Singer & Friedlander Isle of Man.

The British arm of the bank was bought by ING Direct, the Dutch bank, last week. However, Isle of Man deposits and investments were left out of the deal and now require the protection of the Isle of Man compensation scheme.

The Isle of Man government last week voted to increase the deposit protection to £50,000.

However, advisers said that compensation would be negligible as it is limited to one claim per firm — regardless of how many policyholders have bonds linked to the bank.

Dean Blake of Grant Thornton, the accountant, said: “We were hoping that the parent company in Iceland, Kaupthing, would allocate the necessary funds — but that hasn’t happened.”

He added: “We hope the liquidator understands that this is not just an institutional investment — these are real people’s retirement savings.”

Offshore bonds have soared in popularity following the crackdown by Revenue & Customs (HMRC) on those who fail to declare interest earned on offshore savings accounts.

Offshore bonds allow investors to take 5% income a year and to defer tax paid until the bond is encashed.

Mike Warburton of Grant Thornton said that if offshore bondholders were able to take profits they might be forced to pay income tax because the Revenue was likely to consider the bonds had been encashed.

Aegon Scottish Equitable International told advisers: “The Financial Service Compensation Scheme does not protect deposits with Kaupthing Singer & Friedlander. It is too early to know what the outcome of the liquidation will be.”

British savers were deserting their offshore savings accounts in Jersey, Guernsey and the Isle of Man last week as fears grew for the safety of banks based there, including Kaupthing Singer & Friedlander Isle of Man, which took over Derbyshire building society’s offshore business in December.

Experts warned that those who repatriate funds to the UK could be ensnared in the Revenue’s investigation into unpaid tax on offshore savings.

Warburton said: “This event might well assist HMRC in their search for offshore savings. If you are UK domiciled and you have a savings account with straight-cash terms you should have been declaring your interest.”

The Revenue said: “We know a small minority of taxpayers seek to evade UK tax through the use of offshore funds. Ensuring that funds transferred into a UK account from an offshore source have been properly accounted for is a part of our day-to-day business.”

Savers with accounts operated by Landsbanki, the failed Icelandic bank, in Guernsey feared they might not get their money back after the UK Financial Services Compensation Scheme confirmed it would not cover them.

Deposits with Landsbanki’s UK-based subsidiary, Heritable Bank, have been bought by ING Direct, the Dutch bank, while UK customers of Icesave, part of Landsbanki, have had their deposits guaranteed by the Treasury.

There is no deposit protection scheme in Guernsey or Jersey. Those with deposits in Landsbanki Guernsey will have to rely on the Guernsey government to reimburse their savings.

The bank’s website says: “The Administrator will be working towards an orderly repayment to depositors . . . [but] we cannot say how much or when.”