Earlier this week it appeared that some extra money would be dedicated to bondholders under the latest scheme which is looking to combine government and bank levies with monies raised by the potential sale of KSF IOM assets.
But the IOM government has confirmed to Money Marketing that this is not the case and that sums raised by the government and local banks will fall within the Depositor Compensation Scheme. Under the DCS, bondholders are classified as a grouped claimant via their insurance company under the current compensation legislation and so will not receive individual compensation.
The IOM government says it remains optimistic that combining fund sources will benefit all KSF IoM depositors, including bondholders by encouraging an accelerated payout to those affected, and that all depositors will rank equally in the event of a liquidation.
AILO says it is continuing to work closely with the Manx Insurance Association and the IoM government to get the best possible outcome for policyholders whose advisers recommended investment in KSF.
The provisional liquidator is currently working to quantify claims on KSF IoM assets and is due to hold an update hearing on Jan 15 when more information is expected to be made public.