I have to say, I quite agree Smala01.

I hope everyone is happy with this. You are of course, free to continue discussing this in a separate thread, but please be specific in the title about the product or company you are discussing.

Many thanks.

I feel this thread has reached its natural conclusion.

1) Its very clear that if you have opened an account via UK website then you ARE covered by the UK compensation scheme.

2) If you have opened an account on the Isle of Man then you are covered by a different scheme.

In my opinion this thread should now be locked, as it is causing unfair speculation on Kaupthing Edge which is running its business fairly and within the rules.

Smala01

Braders,

You're talking specifically about money held with Kaupthing Singer & Friedlander (Isle of Man) Limited - and as you point out, this is covered by the Isle of Man Depositors' Compensation Scheme. As I've explained, the Isle of Man is outside the financial jurisdiction of the UK and I'm afraid I'm unfamiliar with the details of this scheme, though I imagine it's very similar in principle to the UK scheme.

The important thing for UK savers is that Kaupthing Edge, registered in London, are fully authorised by the UK Financial Services Authority (FSA).

In the event of Kaupthing Edge or its parent company - Kaupthing Bank hf in Iceland - running into difficulty, money held with the UK subsidiary of Kaupthing Edge is protected up to 35k and £70k for a joint account.

Graeme no one including yourself is picking up on the fact that the parent bank guarantees 100% of a persons savings, this guarantee is placed with the relevent authorities (FSC) in the IOM and I have an email from them confirming this.

Dear Mr Bradley

RE: Kaupthing Singer & Friedlander (Isle of Man) Limited

I can confirm the following:

• The above company is licensed to carry on banking business in or from the Isle of Man.
• In respect of activities conducted in accordance with this licence, the Banking (General Practice) Regulatory Code 2005 issued by the Financial Supervision Commission under Section 10 (1) of the Banking Act 1998 applies.

· The Licenceholder is a participant in the Depositors’ Compensation Scheme, established under the Banking Business (Compensation of Depositors) Regulations 1991, as amended.

· A copy of a guarantee issued by Kaupthing Bank hf is held by the Commission.

Braders,

I think much of the confusion arose because your investment was made via the IOM whereas the majority of people will invest via the UK offices.It wasn't clear at all where you had invested, until your final post. It is what I had suspected,but until you clarified it we didn't know for sure.

No problem I think it all slots into place now.

Graeme ,thanks should shut em all up now

For the record I am with K/E my interest paid monthly

which I simply withdraw into my linked current acc as

I use it as part of my income.Never had a problem at

all with this bank either logging in or with their site it's

pretty good in my estimation

Graeme,

I think we are saying the same thing thankfully. ;-)

Braders,

Reading your correspondence very very carefully, I can only think that you have contacted the wrong people in asking for advice. i.e. you have asked the IOM office where you should have asked the UK office. The reply confirms that there are separate compensation schemes operating dependant on where you had deposited.

The product you say you have comes from the UK subsidiary and not IOM. Perhaps they think at the IOM you have investments with them.

It's terribly confusing but I think there maybe is a misunderstanding in the IOM about which product you have invested in ?

I think we're probably massively over-complicating the issue here, so I’ll attempt to clarify. This is my understanding of the situationm so here goes…

As far as I can see, Braders information is specific to the Kaupthing subsidiary based in the Isle of Man (IOM). The IOM subsidiary is covered by the IOM equivalent of the UK’s Financial Services Compensation Scheme, called the IOM Depositors Compensation Scheme. The Isle of Man is not part of the European Union or European Economic Area - it has a special relationship with the EU set out in Protocol 3 to the United Kingdom's Treaty of Accession, hence the different compensation.

The confusion here seems to surround Kaupthing’s parent group, which is based in Iceland. While Iceland is not a full member of the EU, it is part of the European Economic Area (EEA). In the unlikely event that an Icelandic bank which is not fully registered with the FSA in the UK, were to fail, your first claim for compensation would be to the compensation scheme in the bank's home country of Iceland. If there were a shortfall in compensation, you would need to apply to the Financial Services Compensation Scheme (FSCS) in the UK to ‘top-up’ the remainder to the full £35,000.

There are exceptions, however, and the key here is the bit above in bold. Kaupthing Edge in the UK is fully registered with the FSA in the UK and therefore fully covered under the FSCS - up to £35,000 for an individual account or £70,000 for a joint account. As far as I can determine, the Isle of Man-registered subsidiary comes under a different jurisdiction.

As previously mentioned, accounts applied for via moneysupermarket.com link to the UK-registered subsidiary of Kaupthing Edge, so you are fully covered by the FSA and FSCS.

Kevin Mountford touched upon this subject in this week’s video interview with Clare Francis:

“There are a number of anomalies under the compensation scheme and I think that's something that needs to be addressed going forward, but basically all of the savings providers that operate in the UK are regulated by the FSA, so there's some comfort from there. However, with the European banks there is a clause in the compensation scheme that offers what they call a 'European Passport' element to it, and that means that if you are not fully registered in the FSA in terms of the scheme, then your first point of call is to the country of origin.

So for instance if it was an Icelandic operator that wasn't fully protected under the scheme, you as the consumer would first of all go to Iceland, and if there's any residual amount of the £35,000 you would then claim under the UK scheme. But for world-wide, i.e. non-European then you find you're covered up to £35,000.“

Click here to watch the full interview.

I hope that helps.

Have a great weekend.

backfoot:

checkxp:

If you can read everything I say (even though it's a little long) I said the BANK: Kaupthing is a bank from the Isle of Man; which has subsidaries in MANY countries (incl. UK) where it's registered LOCALLY!

This means it's as good as UK bank (as they signed the banking code), but it doesn't mean it's bank that comes from the UK. And yes foreign banks sometimes have branches in other countries....

In the future can you please avoid stupid comments like this, and either ask it nicely, or think twice before writing something like this "???????" looks offesive!!!!!

I don't believe anything said was offensive or stupid. I felt the information you had provided was incorrect or imprecise and still do.We are not involved with the IOM subsidiary,( I think Braders has a different product).

The link below from the UK site for their two main products (Savings Account at 6.55% and 12 month Term Deposit at 7.15% ) we are likely to invest in takes you to a comprehensive set of information about Kaupthing hf and its subsidiaries. http://www.kaupthing.com/About/Introduction-to-Kaupthing

As I read it the IOM office is purely a subsidiary and the parent company is Icelandic.Where is your information coming from?

Cheers.

backfoot:

Braders:

Would anyone care to comment on the following statement sent to me from Kaupthing.

" they are also fully guaranteed by Kaupthing Bank hf – with this guarantee customers have peace of mind that their savings are fully secured. A copy of this parental guarantee has been lodged with the Isle of Man Financial Supervision Commission."

Exactly which product did you apply for /take out and by what means? link from MS or a website/ url?

Braders could you clarify,please.