View more on these topics

Manx govt funding to speed up compensation for KSF IoM depositors

The Isle of Man parliament has approved a £193m government funding package which will accelerate full repayment for more than three-quarters of depositors with Kaupthing Singer & Friedlander IoM.

The new funding package will enable full DCS entitlement to be paid out to claimants by early September, bringing a 100 per cent return of deposits to more than three-quarters of KSF IOM depositors.

The money from Manx government reserves will expedite payments of up to £50,000 per individual depositor under the island’s depositors’ compensation scheme.

The funding comprises £73m in direct support from government under the DCS regulations and an interest-free loan of £120m. This comprises £21m in advance of levies due from banks, and £99m against future dividends payable by the liquidator.

The move follows the rejection of the Manx Treasury’s proposed scheme of arrangement as an alternative to liquidation, in May. The bank was subsequently placed into liquidation and the DCS activated.

Treasury Minister Allan Bell MHK told Tynwald this week that £85m had already been paid out to depositors under the government’s early payments scheme with advance payments of up to £10,000 per depositor.

The current depositors compensation scheme is subject to a ‘sunset clause’ which means that its provisions are due to expire on October 23 this year.

Bell has assured that the level of compensation for individual depositors will be maintained at £50,000, at least, in the new amended scheme that will replace the existing legislation. He has stated that if the new scheme is not in place for October 23 the current arrangements will be extended.


Skill strategy

Simon Ellis has a daunting task ahead of him as he leads the review of the Financial Services Skills Council’s future strategy but he is confident it will be able to regain its licence.

Lloyds completes intermediary review

Lloyds Banking Group has appointed Peter Curran as head of intermediaries for the group. It has completed a restructure of its intermediary proposition, with Phil Rickards as head of BM Solutions, Kevin Purvey as head of both Cheltenham & Gloucester and Scottish Widows and Ian Wilson heading Halifax for Intermediaries.

UK gilts: Shaken and stirred

Mike Riddell, fixed income portfolio manager at Allianz Global Investors, reviews the performance of the UK government bonds market post-Brexit and assesses its future prospects, as well as giving his outlook for global fixed income markets and yields movements. In addition, he provides a brief analysis of the impact of Brexit and the Bank of […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm