Kaupthing Edge - UK savers safe?

Sordice

From the Kaupthing Edge website http://www.kaupthingedge.co.uk/about/fscs.aspx:

FSCS

We are part of the Financial Services Compensation Scheme (FSCS). The scheme is the UK's statutory fund of last resort for customers of authorised financial services firms. This means that FSCS can pay compensation if a firm is an independent body, set up under the Financial Services and Markets Act 2000 (FSMA). The service is free to consumers.
Financial Protection

Payments under this scheme are limited to 100% of the first £50,000 per account holder of all your deposits with us. This means that the maximum claim amount is £50,000.

Kaupthing Edge is operated by Kaupthing Bank's UK subsidiary Kaupthing Singer & Friedlander, which covers you fully under the FSCS

If Channel 4 News stated or implied that Kaupthing Edge was not covered, then in my opinion it wasn't well researched journalism... but I didn't watch Channel 4 News tonight so I don't know exactly what was said

ed123_2

....I see another problem, they have announced to-night they intend to sell off their UK subsidaries which for KE includes Singer & Friedlander for which KE holds the FSA registration. Within KE terms and conditions it states they can transfer its UK subsidary (KE Singer & Friedlander) undertakings to KE (the main bank) which is NOT registered with the FSCS and would notify all customers when this occurs. Their appears to then be some confusion if the FSCS would then cover a bank which is not registered with the FSA??? any views,,,ed

ed123_2

....sorry that should read...."they can transfer its UK subsidary (KE Singer & Friedlander) undertakings to KE (the main bank) which is not registered with the FSA..."

pep27871

I'm concerned regarding money I have in a 2 year fixed rate account with Icesave which has 18 months to run before it matures. Do I have any options to remove it early?

amcluesent

The risk/reward suggest pulling you money out of wibbly-wobbly overseas banks, back into the Crock or Nationwide.

agsnu

ed123 wrote: »

....I see another problem, they have announced to-night they intend to sell off their UK subsidaries which for KE includes Singer & Friedlander for which KE holds the FSA registration. Within KE terms and conditions it states they can transfer its UK subsidary (KE Singer & Friedlander) undertakings to KE (the main bank) which is NOT registered with the FSCS and would notify all customers when this occurs. Their appears to then be some confusion if the FSCS would then cover a bank which is not registered with the FSA??? any views,,,ed

Kaupthing Bank hf is registered with the FSA (No. 222968) and any deposits held there would be covered under the passport scheme in the same manner as Landsbanki/Icesave.

Sordice

From an MSE article "Are your savings safe" http://www.moneysavingexpert.com/savings/safe-savings:

Do note with Kaupthing, there are two listings one for "Kaupthing Bank hf" which has the passport exemption

I assume this means that should Kaupthing Edge be transferred to Kaupthing Bank HF (the main bank) that the passport scheme would apply? How much would be covered by the Icelandic compensation scheme I don't know

Anyone have any more detailed info? Am just looking at the Kaupthing.com website now...

EDIT: you beat me to it agsnu! anyway, just found this link which confirms the passport option of Kaupthing Bank HF http://fscs.org.uk/consumer/How_to_Claim/Deposits/EEA_firms_that_have_topped_up/

OliverDog_2

Hi

Please could somebody give me some advice. I wrote on here last year as I deposited my life savings into the Kaupthing Bank in Iceland (NOT a Kaupthing Edge Account) as my husband was working there at the time.

We have seen our deposit of £70,000 reduce to £35,000 as of last week reduce because of the falling Krona. We have just watched the BBC News and do not understand how we can be protected by the Iceland Government for the whole of our savings on one hand, then on the other the Prime Minister states that Iceland might go into Bankruptcy. Surely if this happened we would loose all our money?

I have just been on the bank website, our money is now only worth £27,000 but if we loose this we have nothing anywhere else. Does anyone think we should withdraw it asap or should we leave it because of the guarantee, we have no financial experience as you can see by the mess we (I) have made.

Please could someone help asap as we cant sleep..

Many thanks

Mikeyorks

pep27871 wrote: »

Do I have any options to remove it early?

Read their T&Cs! Do they offer an early exemption (normally with interest penalty) ...... or did you sign up to leave it in there for 2 full years? If the latter - then that's the option you chose.

In which case - forget it. By the time it matures all this will be a distant memory and the new animation film '(Headless) Chicken Run' ....... will have made a fortune.

nicholbb

OliverDog wrote: »

Hi

Please could somebody give me some advice. I wrote on here last year as I deposited my life savings into the Kaupthing Bank in Iceland (NOT a Kaupthing Edge Account) as my husband was working there at the time.

We have seen our deposit of £70,000 reduce to £35,000 as of last week reduce because of the falling Krona. We have just watched the BBC News and do not understand how we can be protected by the Iceland Government for the whole of our savings on one hand, then on the other the Prime Minister states that Iceland might go into Bankruptcy. Surely if this happened we would loose all our money?

I have just been on the bank website, our money is now only worth £27,000 but if we loose this we have nothing anywhere else. Does anyone think we should withdraw it asap or should we leave it because of the guarantee, we have no financial experience as you can see by the mess we (I) have made.

Please could someone help asap as we cant sleep..

Many thanks

Wow I feel for you but unfortunately this a decision you will have to make. You need to look at the details a bit closer (I suggest an IFA) because if you are not in Iceland I'm not sure if you would be covered, assuming that your money is guaranteed it doesn’t change your situation.
The reason your savings have dropped so much is because of the exchange rate, if you think the Kr!na will continue to fall and stabilise at a low price (perhaps if they join the Euro) then you should cut your losses and withdraw the cash. If you think the Kr!na will recover then you should keep your investments as they are because they will increase in value with the currency.