30-Mar-2016: Liquidators' Update, see Deloitte site

We only wanted our pension fund savings to be safe

We put our pension fund savings with Cheshire Guernsey because we were told it was safe and were told our pension fund savings would remain safe when Cheshire Guernsey became Landsbanki Guernsey.

I am British & live in Lancashire. I started an engineering company in 1979. Ten years later I was advised to save money in a pension fund. We obtained approval from HMRC and started a self administered pension scheme because we only wanted our pension fund savings to be invested on deposit, in the safest way possible, with UK building societies or banks. i.e. We did not want to risk our pension fund being invested on the stock market or elsewhere where our savings could be at risk. During the next 20 years, every year we contributed to our pension fund, which grew steadily & safely. I retired 18 months ago. 6 months later Landsbanki Guernsey, where we have a significant part of our pension fund savings invested on fixed-term deposit (unexpected by us) went into Administration and we now stand to loose a significant part of our pension fund.

We placed pension fund savings with Cheshire Guernsey for many years. This is simply because at the time, Cheshire Building Society would only accept funds from private UK individuals and we were steered towards their wholly-owned subsidiary in Guernsey. We were informed our pension money was entirely safe because Cheshire Guernsey were required to provide parental guarantees to their wholly-owned subsidiary, Cheshire Guernsey. In 2006 Cheshire Guernsey wrote to us and informed us Landsbanki Guernsey were taking over Cheshire Guernsey and that our savings would continue to be guaranteed on a like-for-like basis. In one letter to us, Cheshire Building Society gave Landsbanki wonderful references, serving to reiterate, our savings would be entirely safe in the future. We received additional letters of support from Landsbanki, emphasising how safe our savings would be in the future.