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Ernst & Young “IT error” creates confusion for KSF savers

The Kaupthing Edge internet bank allowed around 2,300 existing customers to continue transferring cash internally through the website after it went into administration last month.

When Kaupthing Singer & Friedlander went into administration on October 8, new customers to the bank were prohibited from opening new accounts and all existing accounts were transferred to ING Direct.

Administrator Ernst & Young stopped new customers opening new accounts online but an IT error with part of the system dealing with new account openings for existing customers allowed customers to open a higher rate fixed-term deposit account offering interest at 7.5 per cent up until November 6.

Ernst & Young has identified the error and is transferring any new accounts opened back into original accounts, back dating interest at the original account rate.

A spokeswoman for the administrator said: “We did not disable the entire site as this would have stopped all customer transacting capabilities on the site causing considerable inconvenience to the customer base by not allowing them to access their money,”


Take the rough with the smoothing

The moves by some life offices to cut final bonuses and reimpose market value reductions on their with-profits funds have been met with disappointment by advisers and investors.


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