London Scottish Bank plc
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Released 01 December 2008
HM Treasury has taken decisive action to protect the interests of retail
depositors and wider financial stability following London Scottish Bank plc
The Chancellor has put in place arrangements to ensure that all eligible
retail depositors (that is, those depositors who are eligible to claim under the
Financial Services Compensation Scheme (FSCS)) in London Scottish Bank plc will
receive their money in full, including those with balances above the current
£50,000 FSCS limit.
Retail Depositors (including individuals)
Retail depositors will receive their money in full when the term of their
deposit matures. They will need to apply to the Financial Services Compensation
Scheme to receive compensation. Further details can be found on the
FSCS website or by
phoning 020 7892 7300.
Wholesale depositors & other creditors
London Scottish Bank plc is in administration. Wholesale depositors are not
eligible for FSCS compensation although they will be creditors in the
administration. Creditors should contact the administrator Ernst and Young on
0207 951 2000.
- The Government will ensure that all retail deposits with London Scottish
Bank plc will be repaid to depositors who are eligible to claim under the
Financial Services Compensation Scheme, including in respect of deposits in
excess of the £50,000 limit under the Scheme, with the Government covering
deposits in excess of the FSCS limit.
- The Financial Services Compensation Scheme working with the administrator
of London Scottish Bank plc will endeavour to contact these individuals
- All retail depositors will receive payments of the gross amounts of the
balances on their accounts.
- Here, retail depositors means those eligible to claim under the FSCS in
respect of their deposits in London Scottish Bank plc (such persons include
most private individuals and some small businesses and charities; for further
details, please see Chapter 4 of the FSA’s Compensation Sourcebook or the
website of the FSCS (www.fscs.org.uk
- It will be a condition of payment under these arrangements that retail
depositors must assign their claims against London Scottish to the FSCS or to
such other person as HM Treasury may require, which will account to HM
Treasury for recoveries, which it makes as a result. No further sums will be
paid to such retail depositors.
- These arrangements supplement, but do not replace, the FSCS (which covers
in full the first £50,000 of eligible deposits).
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Article Published/Sorted/Amended on Scopulus 2008-12-01 14:15:03 in Business Articles