British citizens living in Guernsey and Jersey who lost money in the collapse of the Icelandic bank Landsbanki should not get compensation, UK MPs have said.

The Treasury Select Committee report said the UK government could not compensate losses in jurisdictions outside the direct control of the UK.

But it did acknowledge that offshore savers were not informed of the "changing risk profile" of savings. 04-Apr-09.

http://news.bbc.co.uk/1/hi/world/europe/guernsey/7983151.stm