Kaupthing Edge covered by FSA?

caveat_emptor

From K-E T&Cs

7.8.4 Financial Services Compensation Scheme

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a) Kaupthing Singer & Friedlander Limited (prior to the novation specified in clause 3.2 (Novation))
i. Deposits made with Kaupthing Singer & Friedlander Limited are protected under the UK
Financial Services Compensation Scheme.
ii. Under the UK Financial Services Compensation Scheme, financial protection is limited to 100%
of the first £35,000 of all your deposits with Kaupthing Singer & Friedlander Limited. This
means that the maximum total claim amount as at January 2008 is £35,000.
b) Kaupthing Bank hf (on or after the novation specified in clause 3.2 (Novation))
i. Deposits made with Kaupthing Bank hf are protected under the UK Financial Services
Compensation Scheme and the Icelandic Deposit Guarantees and Investor Compensations
Scheme. The total financial protection given to you under both schemes is no less than you
would receive if your deposit was only protected by the UK scheme.

ii. Under the Icelandic Deposit Guarantees and Investor Compensations
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Jonbvn

Some good info on the website.
http://www.kaupthing.com/Pages/565
In February 2008 Moody's Investors Service downgraded Kaupthing Bank's credit ratings. The Bank's long-term deposit and senior debt ratings in local and foreign currencies were downgraded one notch from Aa3 to A1 and the Bank's Financial Strength Rating from C to C-. The Bank's rating for short-term obligations in local and foreign currencies, P-1, which is the highest short-term rating given by Moody's, remains unchanged.
Moody's notes that Kaupthing's liquidity profile and cash position is strong, and the announced asset sale by Kaupthing Singer & Friedlander is also viewed positively in terms of liquidity. Even though the rating agency expresses concerns with regard to asset quality, it notes that it has conducted several stress tests on Kaupthing's loan portfolio, subjecting it among other things to different defaults, which showed that Kaupthing can withstand substantial downward pressure.

Moody's Investors Service downgraded Kaupthing Banks' credit rating to Aa3 in April 2007. The downgrade came in the wake of an upgrade by four notches in February 2007, which was based on Moody's new joint default analysis (JDA) methodology which takes into account potential sources of external support for banks. Following criticism that was levelled at Moody's new JDA methodology, Moody's credit rating for Kaupthing, and many other banks, was then revised with the aforementioned results.
Credit Opinion here. (PDF)