KAUPTHING SINGER AND FRIEDLANDER ISLE OF MAN DEPOSITORS AND BONDHOLDERS
- Session: 2010-12
- Date tabled: 25.05.2010
- Primary sponsor:
- Sponsors:
That this House recognises the decision by the Financial Services Authority (FSA) to revoke Kaupthing Singer and Friedlander UK's (KSF UK) deposit-taking licence led to the ultimate collapse of Kaupthing Singer and Friedlander Isle of Man (KSFIOM); notes that the decision taken by KSFIOM's directors to transfer over 50 per cent. of assets to KSF UK, which was approved by the Financial Supervision Commission following extensive consultation with the FSA, contravenes both UK and European banking practice; further recognises that some 3,000 KSFIOM depositors with savings above the £50,000 compensation threshold, many of whom are British pensioners, are yet to be fully recompensed; further notes that British offshore depositors remit tax to the UK via income declaration or withholding tax and are therefore deserving of action by the Government; asks the Government to intervene directly and calls on the Isle of Man authorities to ensure all despositors receive full compensation, in line with UK depositors; further calls on the 10 life companies that mis-sold over 1,000 bondholders in KSFIOM, a product offering capital security, low risk and regular income potential, to re-evaluate their businesses and marketing practices and recompense policyholders accordingly; and requests that the Ministry of Justice further investigates whether the Isle of Man has the necessary skills, experience and processes in place to ensure effective self-regulation, as well as the conflicts of interests of those holding positions in the Isle of Man's political, judicial, regulatory bodies and financial services industry.