Very worrying stop press news re Anglo Irish

masonic

joemardo1 wrote: »

Isn't it true though that any shortfall in the compensation (for uk investors) and even if the back would go bust would be made up from the uk compensation scheme?

In a word, no. It isn't covered by the UK compensation scheme. The only way the UK would pay out any compensation is if the Government decided to do so out of good will.

jack_spratt_2

This is interesting regarding the Post office accounts ( bank of Ireland) on the original application form it stated (fixed rate bond)

Financial Services Compensation scheme

Bank of Ireland is a member of the financial services compensation scheme established under the financial services and markets act 2000.
in respect of deposits with a UK office payments under the scheme are limited to 100% of the first 35,000 of the deposits with the bank.
Most depositors including individuals and small firms are covered .The scheme covers deposits made with offices of the bank within the European Economic Area and deposits denominated in all currencies are treated a like.

Now states that it is under the Ireland compensation scheme !! the goal posts seemed to have been moved .
I just wonder what the legality of the change if things went pear shaped

eeja

jack_spratt wrote: »

This is interesting regarding the Post office accounts ( bank of Ireland) on the original application form it stated (fixed rate bond)

Financial Services Compensation scheme

Bank of Ireland is a member of the financial services compensation scheme established under the financial services and markets act 2000.
in respect of deposits with a UK office payments under the scheme are limited to 100% of the first 35,000 of the deposits with the bank.
Most depositors including individuals and small firms are covered .The scheme covers deposits made with offices of the bank within the European Economic Area and deposits denominated in all currencies are treated a like.

Now states that it is under the Ireland compensation scheme !! the goal posts seemed to have been moved .
I just wonder what the legality of the change if things went pear shaped

Can you trust and believe an official notification by a writer who cannot spell properly and does not know that legislative acts are written with capital letters ?

baby_boomer

FraudBuster wrote: »

My take is that this is the Irish version of
Bank of Credit and Commerce International

Well one way to reduce risk is to avoid the top of the best buy tables when foreign banks are involved.

melbury wrote: »

The bond I am invested in doesn't mature until November:eek: Just don't know what to do for the best, the whole thing is a minefield.

Wait for the bond to mature and then take out your money. The Irish government is still going to be around in November 2009 and withdrawing your money could cost you around 3% net by November 2009 in lost interest to January and lower rates until November if you reinvest now.

As the FT said:

baby_boomer wrote: »

The Irish government has promised to protect all savers’ money until 2010

masonic

jack_spratt wrote: »

Now states that it is under the Ireland compensation scheme !! the goal posts seemed to have been moved .
I just wonder what the legality of the change if things went pear shaped

Well, the Post Office / Bank of Ireland are indeed only covered by the Irish compensation scheme and they were members of the FSCS passport scheme before that, meaning that the FSCS would only pay out for money not covered by the Irish scheme.

The only goalposts that have been moved here are the Irish compensation limits, which were first raised above the UK's limit in September 2008. Before then, the FSCS was exempt from the first €20,000 of claims; afterwards only the Irish scheme was responsible for compensation.

jack_spratt_2

eeja wrote: »

Can you trust and believe an official notification by a writer who cannot spell properly and does not know that legislative acts are written with capital letters ?

Perhaps you could expand your reply

masonic

baby_boomer wrote: »

Well one way to reduce risk is to avoid the top of the best buy tables when foreign banks are involved.

It's not that simple. Some foreign banks (e.g. ICICI, Firstsave) are 100% covered by the FSCS, whilst at least one bank that might be widely thought to be a UK institution (the Post Office) is not covered. The important thing is to clarify whether or not an organisation is exclusively a member of the FSCS, or whether some/all of the money is covered by a foreign compensation scheme.

baby_boomer

Fair comment, masonic, but was assuming that people may not want the worry & hassle of waiting for their money from any scheme.

phoebe03cat

Well am thinking of taking the 1 year fixed 4.6% WITH anglo irish or is the opinion that I'm out of my tree? My thinking is that the involvement of the irish government makes it SAFER than it was yesterday. My concern is though that the bond will mature in Late Jan/Feb which will then be early 2010. Are there any quarantees after 2009, as I'm reading it that it will then have expired. Would appreciate comments as to whether the feeling is that this is best left alone?

masonic

phoebe03cat wrote: »

My concern is though that the bond will mature in Late Jan/Feb which will then be early 2010. Are there any quarantees after 2009, as I'm reading it that it will then have expired.

Once the Government's guarantee expires, the money will be covered by the Irish compensation scheme up to €100,000.