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

Landsbanki under restriction due to FSA regulations before terrorist laws applied

A letter sent from the UK FSA, Financial Services Authority, to Landsbanki on the 3rd October 2008 established that assets were frozen five days before the British government introduced the terrorist law.

According to sources from a local Icelandic newspaper (Morgunbladid), the letter referred to the legislation of financial services and markets from the year 2000. GENPRU, the rules of supervision, said that the FSA had decided to put Landsbanki under certain conditions, including an unbound account in the UK containing no less than 10 percent of the overall deposit amount held on permanent deposit in British pounds.

These accounts would then have to increase up to no less than 20 percent of the funds before 6th October. During this time, Lanksbanki claimed it was almost impossible to provide such funds under extremely short notice. The FSA also stated that the account must be held at the British central bank, the Bank of England, or at a different account approved by the FSA. [Ends]  16-Dec-09.