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compensation when in foreign banks

will someone please answer "Smurfchops" question which was,"How do savers get compensation if their investment is with an Icelandic bank. Is it covered by the U/K government's garantee?"

koko90 Tue 07/10/08 08:46

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R1Geezer
Tue 07/10/08
09:41

Of course not, The UK has enough to "guarentee" why would they guarentee foriegn banks?

Ethel
Tue 07/10/08
12:08

Yes, in many cases. If the foreign bank is regulated by the FSA then the compensation rules and claims are exactly the same as for UK banks.

Kaupthung Edge is fully regulated by the FSA so is totally covered.

IceSave is slightly different - it opted for a different entry to the FSA (passport exemption). If that goes bust the first €20000 will be compensated by the Icelandic government, with the UK scheme making the difference up to £50000.

Of course, we don't know if the Icelandic economy could afford the compensation, but as it is in agreement with the Scandinavian countries it should be okay and as the UK government agreed to this scheme it is highly likely that should the worst happen and no compensation be forthcoming from Iceland, then the UK scheme would compensate the whole amount.

So, in brief, Kaupthung Edge is 100% safe guaranteed.
IceSave should be.

kempie
Tue 07/10/08
17:00

A slight error in Ethel's otherwise accurate assessment is that Iceland has not adopted the Euro therefore the Icelandic Depositors' and Investors' Guarantee Fund (IDIGF), which has an upper limit of just around 3.1 million Icelandic króna for deposits, currently equates to €20,887 (about £16,200).

bobbybob
Tue 07/10/08
21:34

Please take a look at KE website. Some very good info if you bank with them. And yes you are guaranteed £50,000 as it is a UK licenced bank the same as all the high street banks in the UK, so you have all the same regulations applied. FSA covered

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