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

UK News

This page contains brief summaries of and links to media reports on the topic of UK News.

Time's Running Out for Icesave Compensation

Get your skates on Icesavers. There’s only three weeks left to claim compensation online.

It has been two months since the shocking news that Icesave had gone bust after the collapse of its Icelandic owner, Landsbanki.  Even worse was to follow when the Icelandic government immediately announced it had no intention of keeping its promise to partly reimburse UK savers in Icesave.  

Since that time the UK Financial Services Compensation Scheme (FSCS) has moved as quickly as possible to compensate more than 214,000 people who lost their savings. Motley Fool website -08-Dec-08.

Former Bahamas Central Bank executive to lead UK review

More information about the proposed review of the offshore financial centres.

. . . .Mr. Foot's team will first look at with [sic] the Crown Dependencies — Jersey, Guernsey and the Isle of Man — before moving onto Overseas Territories, such as Bermuda, the Cayman Islands and the British Virgin Islands

And the team will have no time to waste, as interim conclusions are expected in time for the UK Budget 2009, expected to be announced next March. The Royal Gazette, Hamilton, Bermuda weibsite - 03-Dec-08.

Guernsey customers angry over Icesave compensation

Customers from the UK who had money in Guernsey branches of the Icelandic bank, Landsbanki, have expressed outrage, stating that their money is going towards compensating others whilst they will receive back very little of the money that they had placed into the bank.  The Money Stop website - 03-Dec-08.

What is in store for offshore banking?

In the pre-Budget report (PBR) the chancellor made quite a low key comment.

"The government will shortly commission an independent review of British offshore financial centres," he said.  He also made it clear that the UK would not be held responsible for any sums held in the offshore bank accounts, in the same way as it is for the amounts held at UK on-shore bank accounts. One wonders what is behind all this. . . .

 . . . But at the end of it all, the mainly Western governments who are seeking information from the off-shore centres may find that their taxpayers were actually being much more honest than they were giving them credit for. ..    By Chas Roy-Chowdhury - Association of Chartered Certified Accountants - 26-Nov-08.

Savings compensation: No repeat of Icesave

The compensation measures used by foreign banks operating in the UK will be the subject of a EU-wide review to avoid a repeat of the Icesave fiasco, the Chancellor announced in his pre-budget report yesterday.

The Government was forced to step in to guarantee the savings of approximately 240,000 savers with online savings account Icesave after its Icelandic parent collapsed.

It also had to arrange the transfer of savings accounts with its failed peer, Kaupthing Edge, to Dutch bank ING.  25-Nov-08.

Warning shot for finance

THE UK Chancellor fired a warning shot across the bows of off-shore tax havens yesterday as he announced a major review of how they transact business.

In a pre-budget report designed to show that he was taking robust action to address the fallout of the credit crisis, Alistair Darling said that jurisdictions would have to show that their tax regimes met international standards. The review, he added, would not examine the constitutional relationship between the UK and Jersey, Guernsey and the Isle of Man.  25-Nov-08.

Senior Lib Dem MEP: Iceland should sue British Government

The Liberal Democrat Member of the European Parliament for Yorkshire and the Humber, Diana Wallis, also the Vice President of the Parliament, has given an interview to an Icelandic newspaper encouraging the Icelandic authorities to take Britain to court over the row over the money which many local authorities and individual savers have in Icelandic banks.

Ms Wallis said, "If I were in the position of Icelandic authorities I would not be hesitant to take the case to the British courts because they are not afraid to rule against their own government". Theo's Blog - 25-Nov-08.

Chancellor wants protection against repeat of Icesave crisis

The chancellor, Alistair Darling, today announced a review of the protection afforded to depositors by offshore tax havens and foreign banks operating with branches in the UK . . .

. . . Britons with savings in off-shoots of Icelandic banks based in the dependencies stand to lose thousands of pounds following their collapse and have been appealing, unsuccessfully, to the UK government to bail them out.

The chancellor said: "They attract banking customers with lower taxes – without contributing to the UK exchequer. But at times of stress, depositors need to know who will compensate them. The British taxpayer cannot be expected to be the guarantor of last resort."  24-Nov-08.

PBR: Chancellor promises to tackle offshore tax evaders

The Chancellor of the Exchequer has hit out at offshore banking centres, accusing them not "contributing to the UK".

Alistair Darling, in his Pre-Budget Report, promised to tackle tax evaders who deposit money in "crown dependencies" like Jersey and Guernsey.

He added he had asked the European Council to produce recommendations to help UK savers who lost money saved with Landsbanki.  FT Adviser - 24-Nov-08.

PBR: Darling calls for review of regulation of offshore territories

Chancellor Alistair Darling has blasted overseas territories for attracting banking customers with lower tax rates without contributing to the UK Exchequer.
He said: “At times of stress depositors need to know who is going to compensate them. The British tax payer cannot be expected to be the guarantor of the last resort. 24-Nov-08.
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