Reply From HM Treasury

  • harrini1
  • 15/10/08 31/05/09
  • not a depositor
  • Offline
Posted: Thu, 30/10/2008 - 15:06

I recently sent HM Treasury an e-mail highlighting the plight of my parents and the 1000's of other savers who stand to lose everything through the collapse of KSF IOM.
I have just recieved a response, which I post here for your information. It would seem that whilst they are sympathetic, they do not consider themselves in any way accountable:

Dear Sir,

I would like to be begin by expressing how sorry I was to hear of the difficulties you have experienced as a result of certain Icelandic banks being taken into administration.

The problem with Icelandic banks did not originate in the UK, but within the Icelandic banking system. While the Government understand many people have been affected by the failure of Icelandic banks, oversight of Kaupthing Singer and Friedlander’s Isle of Man affiliate is the responsibility of the Isle of Man’s regulator. This company is not a subsidiary of Kaupthing Singer & Friedlander in the UK, but of an Icelandic company in the Kaupthing group. As such it was the responsibility of the Isle of Man’s regulator to assess how the failure of the parent company in Iceland would impact on the Isle of Man company and take the appropriate action. However, ultimately this was a failure that started in Iceland and ultimate responsibility for banks in Iceland rests with the Icelandic authorities.

You should note that the arrangements for depositors in banks in the Isle of Man are a matter for the Government of the Isle of Man. Deposits with Kaupthing Singer and Friedlander Isle of Man will be subject to the Isle of Man Deposit Compensation Scheme (DCS). It is my understanding that depositors, including depositors of Kaupthing Singer and Friedlander Isle of Man, who have money in bank accounts in the Isle of Man will be compensated up to £50,000 under the Isle of Man DCS. Further information about the DCS, and eligibility for the scheme, is available on the Isle of Man Government’s website at: www.gov.im/fsc/investor/dep_comp.xml

I hope you find this reply helpful.
Enquiries Unit
HM Treasury

0
Your rating: None

Comment viewing options
Select your preferred way to display the comments and click "Save settings" to activate your changes.

Reply to Treasury

  • mikeinfrance
  • 12/10/08 28/09/09
  • a depositor
  • Offline
  • Thu, 30/10/2008 - 19:24

I just sent this to: CEU [dot] Enquiries(?)hm-treasury [dot] x [dot] gsi [dot] gov [dot] uk
Anyone who hasn't sent an e-mail to this address please do so!!

Dear sirs,

I refer to a letter from the Treasury to one of the thousands of british depositors in KSDFIOM, the text of which is copied below. I was very surprised at the lack of understanding of the situation expressed in this letter. I would respectfully point out the following:

The IOM FSC has made it known that "FOLLOWING DISCUSSIONS WITH THE FSA, assets belonging to KSFIOM were transferred from Iceland to KSF UK, "FOR SAFE KEEPING". Consequently there is currently £557M of KSFIOM assets in KSFUK. British goverment actions in freezing Landsbanki UK assets clearly triggered a run on KSFUK a perfectly solvent bank up until that point, and thus forced it into administration. Furthermore the SEALED COURT PAPERS concerning the administration of KSF UK have made it impossible for the KSFIOM liquidator provisionally to access those funds, which effectively belong to the thousands of british citizens who now face financial ruin. How the british government can deny culpability in this fiasco has to be beyond the comprehension of any rational thinking person.If nothing else the government has at least a moral duty to expedite the repatriation of those funds which it caused to be made inaccessible to the british citizens they belong to.Or does it intend to turn its back on those british citizens whose lives will otherwise be destroyed forever ?

Your "understanding" that the DCS will compensate up to £50K is correct however it must be pointed out that some 60% of depositors had more than £50k deposited,and it seems that a significant number had their whole life's savings,property sale proceeds in transit etc.in this bank. Furthermore it has been estimated that the DCS could take years to pay out just the £50K covered.Currently the balance of the DCS fund is £0 !!

Yours sincerely,

xxxxxx
british born citizen and KSF IOM depositor barred from holding a UK mainland account

copy of letter......


Reply From ICELANDIC FINANCIAL Services

  • Anonymous
  • Offline
  • Thu, 30/10/2008 - 17:52

RE: Fw: Enquiry‏
From: Tryggingarsjóður (tryggingarsjodur(?)tryggingarsjodur [dot] is)
Sent: 30 October 2008 14:53:14
To: valgerdur [dot] run [dot] benediktsdottir(?)vrn [dot] stjr [dot] is;

Dear Sir/Madame.

The Icelandic Depositors´ and Investors´ Guarantee Fund (the Fund ) operates on the basis of

Act No. 98/1999 on Deposit Guarantees and Investor-Compensation Scheme. An English translation of the Act is accessible on the Ministry of Business Affairs´ website: http://eng.vidskiptaraduneyti.is/ > Laws and regulations > Financial services and markets.

Information on the Fund and the Icelandic Deposit Guarantee Scheme is available in English on the Fund´s website: www.tif.is.

For information on the conditions that apply for payments from the Fund, application form for compensation etc., please refer to: http://www.tryggingarsjodur.is/Payments/

http://www.tryggingarsjodur.is/QA/

Note that applications for compensation shall be sent by traditional mail to the Fund´s address, see signature below.

Regards,

Tryggingarsjóður innstæðueigenda og fjárfesta

Depositors and Investors Guarantee Fund
Kalkofnsvegi 1
150 Reykjavík, ICELAND
www.tif.is tif(?)tif [dot] is


From: valgerdur [dot] run [dot] benediktsdottir(?)vrn [dot] stjr [dot] is [mailto:valgerdur [dot] run [dot] benediktsdottir(?)vrn [dot] stjr [dot] is]
Sent: 30. október 2008 13:32
To: Tryggingarsjóður
Subject: Fw: Fw: Enquiry

Tilvísun í mál: VRN08100086


Með kveðju / Kind regards,

Valgerður Rún Benediktsdóttir
Lögfræðingur / Legal Adviser
viðskiptaráðuneyti / Ministry of Business Affairs
Sölvhólsgötu 7
IS-150 Reykjavík
Tel: (+354) 545 8800
Fax: (+354) 511 1161

Vinsamlega athugið að upplýsingar í tölvupósti þessum og viðhengjum við hann eru eingöngu ætlaðar þeim sem póstinum er beint til og gætu innihaldið upplýsingar sem eru trúnaðarmál.
Sjá nánar: http://raduneyti.is/interpro/stjr/stjr.nsf/pages/postur

Please note that this e-mail and attachments are intended for the named addressee only an may contain information that is confidental and privileged.
Further information: http://raduneyti.is/interpro/stjr/stjr.nsf/pages/postur

Frá: Anna S. Gunnarsdóttir/IDN/NotesSTJR
Dags: 21.10.2008 07:50:22
Til: Postur VRN/VRN/NotesSTJR@NotesSTJR

Efni: Fw: Enquiry

Með kveðju,


Anna S. Gunnarsdóttir
skjalastjóri iðnaðarráðuneytis
Arnarhvoli
150 Reykjavík

sími 545 8500
fax 562 1289
anna [dot] s [dot] gunnarsdottir(?)idn [dot] stjr [dot] is

Vinsamlegast athugið að þessi tölvupóstur og viðhengi hans eru eingöngu ætluð þeim sem tölvupósturinn er stílaður á og gætu innihaldið upplýsingar sem eru trúnaðarmál. Hafið þér fyrir tilviljun, mistök eða án sérstakrar heimildar tekið við tölvupósti þessum og viðhengjum hans biðjum við yður að fara eftir 5. mgr. 47. gr. laga um fjarskipti nr. 81/2003 og gæta fyllsta trúnaðar, hvorki lesa efni þeirra né skrá þau hjá yður né notfæra yður þau á nokkurn hátt og tilkynna okkur samstundis að þau hafi ranglega borist yður. Brot gegn þessu varða bótaábyrgð og refsingu skv. 74. gr. laganna.

Please note that this e-mail and its attachments are intended for the named addressee only and may contain information that is confidential and privileged. If you have by coincidence or mistake or without specific authorization received this e-mail and its attachments we request that you notify us immediately that you have received them in error, uphold strict confidentiality and neither read, copy, nor otherwise make use of their content in any way.
----- Forwarded by Anna S. Gunnarsdóttir/IDN/NotesSTJR on 21.10.2008 07:49 -----
sent_af_vef(?)stjr [dot] is
20.10.2008 15:05
To postur(?)idn [dot] stjr [dot] is
cc
Subject Enquiry

Name: Dawn Richardson
Subject: Depositor Kaupthing Singer & Friedlander IOM Ltd

Message: I understand that by Icelandic Law that as Kaupthing hf was the Parental Bank and there should be a Guarantee for Depositors bank subsiduries Such as KSF IOM LTD are guarenteed to get a full Refund of their Deposits.

FSA IOM is covering each of us Depositors for compensation £50.000.
... Would you give me some comfirmation as to the Facts in this Financial Crisis we find ourselves in.

I am a UK Citizen Living in the UK and currently am seeking help from the HM Treasury UK and belong to the (IOM depositors action Group)


Sent af enskum vef iðnaðar- og viðskiptaráðuneyta.


ng is this relevant to this forum

  • mikeinfrance
  • 12/10/08 28/09/09
  • a depositor
  • Offline
  • Thu, 30/10/2008 - 19:28

Is this long string of e-mails relevant to this thread??


sent a mail asking for help

  • VeryWorried
  • 10/10/08 31/05/09
  • unspecified
  • Offline
  • Thu, 30/10/2008 - 17:17

sent a mail asking for help and briefly explaining the rubbish DCS scheme, and frozen assets within the UK


HM Treasury

  • mikeinfrance
  • 12/10/08 28/09/09
  • a depositor
  • Offline
  • Thu, 30/10/2008 - 16:14

Clearly they need to be educated as to why they are responsible. Can you post the link and/or e-mail address you used?


e-mail for HM Treasury

  • harrini1
  • 15/10/08 31/05/09
  • not a depositor
  • Offline
  • Thu, 30/10/2008 - 17:00

e-mail address below:

CEU [dot] Enquiries(?)hm-treasury [dot] x [dot] gsi [dot] gov [dot] uk