Frequently asked questions


The answers here are drafted in general terms and do not constitute legal advice nor should they be relied on as such. As more information becomes available some of these answers may be superseded.

Q. How can I make a claim under the Depositors’ Compensation Scheme in relation to the default of Kaupthing Singer & Friedlander (Isle of Man) Limited?

A. The details of depositors of Kaupthing Singer & Friedlander (Isle of Man) Limited - in liquidation were passed from the Joint Liquidators to the Depositors’ Compensation Scheme Agent ("DCS Agent"), and used to create contact letters issued by the DCS Agent to potential claimants on 5th June 2009.

The letter, the contents of which are available here , explains how a DCS claim can be made using the website www.dcs.im

Q. How can I make contact with the DCS Agent?

A. Contact details are as follows:

Website: www.dcs.im
E-mail: info@dcs.im
Telephone: +44 1624 625 680 (UK office hours only)

Q. I have made a claim under one or both of the Early Payment Schemes - how does this affect any claim under the Depositors’ Compensation Scheme?

A. The amount of any payment you have received from the Early Payment Schemes will be deducted from any compensation payable to you under the Depositors’ Compensation Scheme. Please note, however, that you should not deduct the amount of the payment from your account balance when completing your claim form.

Q. How soon will I receive any compensation from the Depositors’ Compensation Scheme, and how much is this likely to be?

A. The Scheme Manager has stated that claims received before 4th July 2009 ,and fully validated, will be in the first payment run that is planned to be on 1st September 2009. However, this does not mean that later submissions will suffer significant delays in receiving payment.

The Isle of Man Government has agreed to provide sufficient funding to the DCS to enable all compensation payments in respect of eligible claims to be paid in a single payment.

Q. When is the date of default?

A. The date of default has been declared by the Depositors’ Compensation Scheme Manager to be 27th May 2009.

Q. My deposit with Kaupthing Singer & Friedlander (Isle of Man) Limited includes foreign currency deposits, and compensation is payable in pounds sterling. What exchange rate will apply to these amounts, and on what date is the exchange rate?

A. Compensation is payable only in pounds sterling. Any foreign currency deposit will be converted to a sterling sum at the exchange rate on the date of default 27th May 2009 in accordance with the Compensation of Depositors’ Regulations 2008.

Q. How can I find out more about the Depositors’ Compensation Scheme?

A. The Depositors’ Compensation Scheme is set out in Regulations. The relevant Regulations are the Compensation of Depositors Regulations 2008, as amended. The Regulations are the legal documents that detail how the Scheme operates and set levels of compensation for depositors, and the type of depositors to which compensation is payable. The Regulations are available from this site.

Q. What is the current status of Kaupthing Singer & Friedlander (Isle of Man) Limited?

A. On 27th May 2009 a winding up order was made by the High Court and Kaupthing Singer & Friedlander (Isle of Man) Limited was placed into liquidation.

For information about Court Orders in respect of Kaupthing Singer & Friedlander (Isle of Man) Limited please click here

Q I am a bond holder with an insurance company which has invested in KSFIOM. I understand that I am unable to claim compensation under the DCS. Would you please tell me how people like myself will get compensation?

A. You are correct that deposits held within a life policy wrapper, often known as insurance bonds, are generally deposits of the insurance company and not its underlying clients. Accordingly, you are not eligible for compensation. Whilst the insurance company is eligible to claim in its own right, any compensation claim will be limited to £20,000 in total.

It is anticipated that the insurance company will file a claim with the liquidator, and return of funds for the benefit of your bond will be as a result of distributions from the liquidation. You should contact your insurance company for further information about your bond

Q. Will my deposit balance accrue interest for the purposes of the DCS?

A. Yes, to the following extent; an eligible deposit is made up of the account balance and accrued  interest  as at the date of filing the winding up petition (Regulations 9(1)) & 9(4)(a)).   Accordingly, interest for the purposes of DCS calculations accrues up to 9 October 2008 - this is consistent with the approach of the Liquidator when calculating your entitlement.

Q. Do I need to return a proof of debt form to the liquidator?

A. If you have registered for the DCS and signed your assignment form, then you have assigned all your rights to the Scheme Manager and we will act on your behalf. In that situation, the return of a Proof of Debt form is unnecessary and, indeed, meaningless as proofs for all DCS claimants will be lodged by and in the name of the Scheme Manager.

Q. How can I find out if/when my signed assignment of rights and form of notice have been received?

A. You can log into the system using your login details and click on the link 'Show Claimant Summary". Alongside the box referencing the Assignment and Form of Notice, a date will be displayed if your form has been received. If it is blank, then the form has not been received. Logging will take place within one working day of receipt.

Q. Having assigned my rights to the DCS, will I still get back any payments by the liquidator in excess of the compensation I get from the DCS?

A. Yes. As the liquidation proceeds and distributions are made, the DCS will recover the compensation payment.  Once the compensation has been fully recovered, any further distributions by the liquidators will be re - directed to you (the Scheme Manager will  automatically  seek a re-direct). 

The assignment you executed transferred all the rights in your account (and any other accounts you have with the bank) to the DCS.  If, after the recovery of the compensation, you actively wish the DCS to re-assign all rights to you (as opposed to receiving the redirected monies referred to above), the DCS Scheme Manager upon request will prepare re-assignment documentation which you will be required to execute and return to the Scheme Manager. You will also need to give notice of the re-assignment to the liquidators and for this re-assignment to be accepted by them for it to take effect.  

Note: The re-direct approach  does not require formal re-assignment and is the preferred approach, as this will reduce administrative time and cost for both the DCS and the Liquidators.

Q. How can I track the progress of my claim?

A. You can follow the progress of your claim by logging into the site and clicking on 'Show Claimant Summary' - this will show you whether you have completed all the required sections, and once we have received your forms, the logged date of receipt. 

You will note a section of the Summary called Validation. This link will show you other validation statuses as they arrive. However, at present it contains no information - the first indicator will relate to the acceptance of the signature check in conjunction with the liquidator.

Q. We are joint account holders - do we register our claims together or separately?

A. The answer to this depends on whether you are registering your claim online or by post.

The legalities governing electronic registration of a claim mean that each individual must have their own separate registration, complete the account details (even though these will be the same for each of you), print and sign their own forms.

Where application is made using the paper form, then we are permitted to accept a joint form (and indeed the forms refer to claimant 1 & claimant 2) signed by you both.

Q. What form will payment be made in?

A. We expect the majority of payments to be made by sterling cheque, but we understand that for a substantial number of claimants this will not be a suitable method of transmission. The Scheme Manager will shortly finalise the basis on which bank transfer instructions will be accepted. This will not be made available before the signature check has been performed.

Notices will be placed on the web site and notification will be sent by email.

Q. What do I do if my address has changed?

A. Changes of address should be advised to the Liquidator in writing (as they will require a signed request in order to verify your identity) at the following address:

Liquidator Kaupthing Singer & Friedlander (Isle of Man) Limited (In Liquidation) PO Box 197 Samuel Harris House 5-11 St Georges Street Douglas Isle of Man IM99 1SN

Until the signature check has been completed the Scheme Manager will not accept any changes of claim details.

Q. Notice to EDGE customers?

A. EDGE customers complete the same processes as any other claimant. On the claim form you are asked to indicate that you have an EDGE account, and will be asked to supply the EDGE password (which cannot be used as the service has ceased).

Unfortunately, the bank itself can no longer access these passwords, and this cannot now be used to validate your identity.

If you have indicated that you have an EDGE account you will receive an email from Mike Fayle who will describe himself as the Scheme Agent. The email address that this will come from is "mfayle@kpmg.co.im". The email will ask you to reply with details of the "nominated bank account" details that you were required to use in conjunction with the EDGE account.

This is the only means by which your identity can be confirmed and your claim cannot be processed without these details. Please respond as soon as you are able.


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