Kaupthing Singer and Friedlander: Isle of Man

Treasury written question – answered on 22nd January 2009.

Alert me about debates like this

Photo of John Butterfill John Butterfill Conservative, Bournemouth West

To ask the Chancellor of the Exchequer what recent discussions he has had with the government of the Isle of Man regarding funding to enable the Isle of Man to compensate British depositors with Kaupthing Singer and Friedlander.

Photo of Ian Pearson Ian Pearson Parliamentary Under-Secretary (Economic and Business), Department for Business, Enterprise & Regulatory Reform, Economic Secretary (Economic and Business), HM Treasury

holding answer 20 January 2009

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.

Does this answer the above question?

Yes0 people think so

No78 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.


Hopes Dashed
Posted on 25 Jan 2009 6:25 pm (Report this annotation)

If arrangements for depositors in banks in the Isle of Man are a matter for the government of the isle of Man, why does HMG not return the 550 million gbp it has frozen in the UK, so that the depositors may see their hard earned savings returned to them?

Very Worried
Posted on 26 Jan 2009 1:11 am (Report this annotation)

Many of the people who deposited money in the Isle of Man are the same UK citizens that Gordon Brown pledged to protect from this crisis. However, he didn't seem to notice that due to the unintended consequences of the "know your customer" anti-moneylaundering legislation, UK citizens who are temporarily working overseas are not permitted to open bank or savings accounts in the UK by 56 out of 58 institutions asked (the necessary steps to verify identy are onerous and uneconomic for the banks, so they just refuse to open the accounts).

These people have been forced to bank offshore if they want to save for a pension or anything else, where the government can conveniently wash its' hands of them.

The Isle of Man deposit compensation scheme currently has no funds to distribute. It does not levy participating banks until triggered by the failure of a bank. The Isle of Man Government has not clarified to date how long it will take for depositors to receive the maximum £50,000 pound payment under the scheme, but we do know that it will take many years.

Stephen Thomas
Posted on 26 Jan 2009 7:55 pm (Report this annotation)

Mr Pearson firstly may I congratulate you for not answering the question and simply repeating the party line. A line that of course takes no account of the real actions of the FSA, who seemingly trampled all over the IoMs rights and protocols in their eagerness to secure assets. In this case assets of mine and thousdands of others in KSF IoM. So please respond accordingly next time and there will be many next times over this issue.

Secondly I am aware of your position regarding the opening of bank accounts for expatriate workers (please not we are workers not tax evaders), so I cordially invite you to join me at a bank of your choice, to open a bank account with a man who does not have a UK resident address. By doing so I hope you will see the error of your previous statements on this issue.

kind Regards


James Blake
Posted on 2 Feb 2009 12:15 am (Report this annotation)

Mr Pearson made the same misleading comments in Parliament on the 6th of November 2008. When is the Speaker going to investigate those comments made by Mr Pearson? When did it become OK to mislead Parliament by knowingly making factually incorrect statements in the House?

k siddall
Posted on 11 Jul 2009 10:54 pm (Report this annotation)

Mr Pearson

Please tell me how I can open a bank account without a Uk address Mr Eric Daniels CEO of Lloyds TSB assures me I cannot.