Icesave - lobby your MP NOW

Andrew64

If you save with Icesave, where exactly is your money - Britain or Iceland??

As Icesave is under the Icelandic scheme, surely this means Icesave accounts should be counted as Icelandic accounts.

If it's in Iceland, shouldn't it be subject to the 100% garantee?

1echidna

rebecca0813 reported as a spammer.

Swipe

I was under the impression that the first €20k was covered by the passport scheme and, if that fails (which now looks fairly likely) you are then covered in full up to £50k by the FSCS. I take it will all this panic that this means my assumption was incorrect and that the first €20k will now be lost and UK Icesavers will only now be covered for the remaining £35K. Is this correct?

1echidna

My reading of it was that the first 20,000 euro was covered by the passport scheme with no provision for it failing. The remainder being covered by the FSCS, so in answer to your question I believe you are correct.

Swipe

So if you have less than €20k you won't get a penny back from the FSCS?

1echidna

Swipe wrote: »

So if you have less than €20k you won't get a penny back from the FSCS?

No I presume you won't, unless the FSCS acts under pressure from UK depositors to pay or the FSA admits liability due to a failure of supervision should Iceland be unable to pay. It strikes me the whole affair could be very prolonged unless the IMF or other Scandinavian countries step in to help Iceland.

Baldur

1echidna wrote: »

No I presume you won't, unless the FSCS acts under pressure from UK depositors to pay or the FSA admits liability due to a failure of supervision should Iceland be unable to pay. It strikes me the whole affair could be very prolonged unless the IMF or other Scandinavian countries step in to help Iceland.

The FSCS has no responsibility to pay, other than any top-up element above the home country's scheme, according to their FAQs:

4. What is the position of people who have an account with a UK branch of European bank? If you have an account with a UK branch of a bank incorporated in the European Economic Area (EEA) that becomes insolvent, we may also be able to help. Under the EU Deposit Guarantee Schemes Directive, all member states of the EEA are required to establish a deposit guarantee scheme which gives a minimum level of protection for depositors of 20,000 Euros per eligible depositor in the event of a bank failure.
A bank established in another EEA state should be a member of that state's compensation scheme, which is designed to protect depositors in that EEA country, and those with accounts at branches in other EEA countries. Where the bank's home state scheme provides a lower limit of compensation than FSCS (i.e. less than 100% of £50,000), or the scope of protection is less than FSCS's, the bank may choose to join FSCS to 'top up' the level of protection offered by the home state scheme. The link below leads to a list of banks that have topped up into the UK Scheme with their FSA reference numbers and the month and year FSCS or the predecessor scheme accepted their application to top up.
In the event of a failure of one of these banks, there would be a two step process as the home state scheme would have lead responsibility for claims, and would be responsible for paying the first part of any compensation. FSCS is only responsible for paying compensation for the topped up element to £50,000 on deposits with the UK branch. FSCS would, wherever possible, try to assist claimants in their dealings with the home state scheme (for example, by putting them in contact with the home state scheme, or helping them understand the process that the home state scheme will follow). FSCS would then deal with any 'top up' claims.

1echidna

Baldur wrote: »

The FSCS has no responsibility to pay, other than any top-up element above the home country's scheme, according to their FAQs:

Thanks for that Baldur, you seem to be a bit of a wizard at finding your way around T&Cs and similar documents. I must admit I find them turgid and difficult to digest.

Baldur

1echidna wrote: »

I must admit I find them turgid and difficult to digest.

So do I, but my self-protection mode kicks in whenever I deal with financial institutions....

mybrainhurts

edwinac wrote: »

You are a fairly obvious shill. You arrived just two days ago, and have posted almost exclusively, and very aggressively on the Icelandic banking crisis. You arrived with arms flailing, and made no effort to ease yourself as a "newcomer" into this web community. This indicates you were already familiar with the forum from a propagandist's perspective. Furthermore, your personality and posting style has mutated rapidly. This suggests a team of people is using the nicholbb moniker.

Agreed. It was crystal clear that his first post was written by someone whose first language is not English (and probably is Icelandic). Ignore.