Isle of Man subsidiary of Icelandic bank Kaupthing Singer and Friedlander (KSF)

iinvestor

I was just wondering what happened to UK savers who invested in kaupthing singer and Friedlander (KSP) through its isle of man subsidiary. Did they get their savings back.

I know UK SAVERS who invested through the the system got theirs back BUT what about this poor family?

http://www.dailymail.co.uk/news/article-1078819/Caravan-park-owner-built-1-2m-fortune-left-bank-collapse.html

http://news.bbc.co.uk/1/hi/wales/7679366.stm

any one have an update on them?

Baldur

See http://www.ksfiomdepositors.org/view/content/summary

dunstonh

Dont know any updates but the FSA have said they would consider complaints against advisers using offshore bonds for deposits where the risk was not disclosed. So, the advising firm is potentially in the mix if they chose to make a complaint. That said, FSCS protection differences to onshore bonds is something you would expect to be documented as a matter of course.

Whilst you may consider this family "poor", you do have to remember that the use of the offshore bond was done for tax purposes. It would also not have been used for paying the CGT bill as the bill is greater than the amount that could have been withdrawn without creating a chargeable gain which would have suffered a significant tax bill. So, other funds would have been earmarked to pay that CGT bill.

So, whilst its a large loss, its not quite the full story, as is so often the case in media articles.

whiteflag_3

Dont quite understand where / what point Dh is making, but you may find this useful

http://www.moneymarketing.co.uk/cgi-bin/item.cgi?id=177950&d=340&h=341&f=342

dunstonh

whiteflag wrote: »

Dont quite understand where / what point Dh is making, but you may find this useful

http://www.moneymarketing.co.uk/cgi-bin/item.cgi?id=177950&d=340&h=341&f=342

The point is that they sought advice and the FSA have confirmed that complaints regarding risk would be considered where offshore bonds using cash accounts were recommended and the risks were not pointed out.

http://www.moneymarketing.co.uk/cgi-bin/item.cgi?id=178277&d=340&h=341&f=342

whiteflag_3

dunstonh wrote: »

The point is that they sought advice and the FSA have confirmed that complaints regarding risk would be considered where offshore bonds using cash accounts were recommended and the risks were not pointed out.

http://www.moneymarketing.co.uk/cgi-bin/item.cgi?

d=178277&d=340&h=341&f=342

Yes but the OP asked

"I was just wondering what happened to UK savers who invested in kaupthing singer and Friedlander (KSP) through its isle of man subsidiary. Did they get their savings back"


The answer is so far no.

Dh -What has the FSA got to do with putting together a rescue package ? In this case if everything else fails, how is putting in a complaint against the IFA going to help?

What was meant by this?

"Whilst you may consider this family "poor", you do have to remember that the use of the offshore bond was done for tax purposes"

iinvestor

surely any UK citizen who has income from a foreign country has to pay tax in the UK on that income. Unless their is an agreement between the two countries.

so surely these people had to pay tax on the interest received.

whiteflag_3

iinvestor wrote: »

surely any UK citizen who has income from a foreign country has to pay tax in the UK on that income. Unless their is an agreement between the two countries.

so surely these people had to pay tax on the interest received.

not while it is/was in the offshore bond

in fact (under current legislation )they could take "income" of 5% per annum for 20 years and not pay any tax either,