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George traveler July 22, 2010 at 1:11 am

One thing that should be born in mind if depositing money in Guernsey is that it has an inadequate Depositor compensation scheme, which, although on the face of it offers up to £50,000 compensation, is subject to a number of restrictive limitations. During the past year Guernsey’s retail deposits have fallen by around 20%.
Now with the European Commission intending to raise its retail depositor protection up to 100,000 Euros per person payable within seven days, Guernsey had better get of its laurels and start treating its depositors better.
So far they have an abysmal record allowing landsbanki Guernsey to be placed into administration in October 2008, leaving 1600 depositors £117 million down without any compensation and not a finger lifted by the Guernsey Government to assist them.
Much of the blame for that has to fall at the feet of the Guernsey Financial Services Commission who failed in their due dilligence in the run up to the administration and allowed Landsbanki Guernsey funds to be upstreamed to Heritable plc, a wholly owned subsidiary of landsbanki Islands hf in Iceland, and reliant on Landsbanki hf for cashflow. Heritable was placed into administration on 7th Oct 2008 and Landsbanki Guernsey’s money ended up in their administration pot.
With the prevailing conditions at the time the GFSC should have forced Landsbanki Guernsey to place that money with a third party, not a sister company relieant on Landsbanki islands hf in Iceland.
Beware of depositing money in Guernsey.

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