HM Treasury

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129/08

01 December 2008

London Scottish Bank plc

HM Treasury has taken decisive action to protect the interests of retail depositors and wider financial stability following London Scottish Bank plc entering administration.

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. 

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Notes for Editors

  1. 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.
  2. The Financial Services Compensation Scheme working with the administrator of London Scottish Bank plc will endeavour to contact these individuals shortly. 
  3. All retail depositors will receive payments of the gross amounts of the balances on their accounts.
  4. 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)).
  5. 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.
  6. These arrangements supplement, but do not replace, the FSCS (which covers in full the first £50,000 of eligible deposits). 

Non-media enquiries should be addressed to the Treasury Correspondence and Enquiry Unit on 020 7270 4558 or by e-mail to public.enquiries@hm-treasury.gov.uk

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