16
BANK NEWS
Bell: ‘return better than expected’
Kaupthing S&F
depositors to
get 65% return
New information from the
UK arm of Kaupthing
Singer & Friedlander could
mean “quicker and higher
recoveries” for depositors
caught in the collapse of
the Icelandic bank’s IoM
operation last October.
Ernst & Young, administrator
of the UK arm of the
bank, has issued an interim
report indicating a possible
overall recovery rate of at
least 50% for UK creditors
of KS&F.
“This is higher than anticipated
and moves the estimated
minimum recovery
rate for [depositors in the
Isle of Man branch of the]
bank from 65% to about
75%,”, Isle of Man Treasury
Minister Alan Bell said.
The improved prospect
of returns from the UK
could accelerate repayments
under a so-called
Scheme of Arrangement
(SOA) the Isle of Man government
has proposed for
Isle of Man depositors, the
statement added, noting
that individual entitlements
of up to £50,000 “could be
paid in full in 12 months
instead of 24 months”.
Focus
* Best International Wrap Provider
NatWest IPB launches new
structured deposit offerings
BY HELEN BURGGRAF
NatWest International
Personal Banking (NWIPB)
has launched two structured
deposit accounts
providing exposure to the
RBS Green or UK Balanced
Sector indices and the
FTSE 100.
The first of the two, the
Sectors account, provides
savers with two options:
one giving them exposure
to the emerging ‘green’
business sector, and one to
the more mainstream established
UK business sector.
Sector account savers
receive an interest rate of
5% gross AER on one-third
of their deposit in the first
year of the account; this
third, plus interest, will be
repaid to them after just
one year.
Upon maturity after five
years, savers get back the
remainder of their deposit
plus 70% of the growth
an investment of this
amount would have generated
by having been invested
respectively in either
the RBS Green Index or
the RBS UK Balanced
Sector Index.
The second account,
called Market Deposit, is
a five-year, capital-protected
account, designed to
give investors a combination
of security and potential
for the growth of their
savings. This account has
been designed to pay 30%
KEY DATES
Minimum deposit: Sectors
Account – £10,000; UK Mkt
Deposit Account – £25,000
Offer period: 30 Mar – 29 May
Last date for applications:
29 May ’09
Last date for funds: 11 June ’09
Start date: 17 June ’09
Maturity dates (Sector):
1-yr cash deposit: 17 Jun ’10
5-yr equity deposit: 19 Jun ’14
Maturity date (UK Mkts):
19 June ’14
gross interest if the FTSE
100 Index is equal to or
above the starting level
upon maturity after a fiveyear
term.
Abbey International offers new account
as Santander mulls Isle of Man sell-off
Abbey International is
offering investors a new
account paying 3% AER
over 12 months.
The account, available
only to new money, has a
minimum balance of
£50,000. After a year savers
can choose to roll over
their money into a new
account or withdraw it.
Jane Matthews, head of
client experience at Jerseybased
Abbey International,
said: “With the UK base
rate remaining unchanged
this month at 0.5%, this
*
account offers an attractive
3% gross rate of return.”
Launch of the account
comes amid speculation
Abbey’s parent company,
Spanish banking giant
Santander, is planning to
sell off the Isle of Manbased
deposit taking operations
it acquired last year
through the takeovers of
ailing UK banks Bradford
& Bingley and Alliance
& Leicester.
According to reports,
investment bank Gleacher
Shacklock has been hired
to oversee the sale of both
banks’ offshore operations.
The desire to sell the
Isle of Man banks is
because Abbey already has
an offshore banking operation
in Jersey.
Last year, Santander
began overhauling this
division, which was historically
only used for deposit
taking, and plans to offer
more wealth managementbased
services from the
Channel Islands.
Abbey declined to comment
on the reports.
The award-winning banking and investment service
that evolves to meet your needs.
So if you’re looking for a fully adaptable service, call us on
+44 (0) 1624 645000 or visit www.fairbairnpb.com
Interest nonexistent
in a
quarter of US
dollar accounts
A quarter of dollar offshore
savings accounts paid
depositors no interest at all
during the period between
28 Nov, 2008 and 27
Feb, 2009, according to
research by Investec Bank
(Channel Islands), as the
credit crunch took its toll
on savers.
Investec’s quarterly US
Dollar Offshore Savings
Index also revealed that a
third, or 33%, of these
accounts paid less than
0.1% during this period.
The company’s focus on
the average interest rates
being offered on offshore
dollar accounts is more
than academic, as it has its
own US dollar product, the
Horizon Account.
The three-month period
to 27 Feb coincided with a
decline in the Federal
Reserve (Fed) rate to 0.25%
from 1%, which consequently
saw the average
interest rate paid on dollar
offshore savings tumble by
0.75% to 0.53%.
The Horizon Account is
currently offering 1.60%
gross (1.61% AER), which
it notes is 1.35% above the
Fed rate of 0.25%.
The 90-day notice, variable
rate Investec Horizon
Account is available in
dollar, euro or sterling
classes, and is available to
savers with a minimum
investment of $50,000,
€50,000 or £25,000.
www.investec-ci.com
distinctly different
Fairbairn Private Bank is a registered trade name of Fairbairn Private Bank (IOM) Limited and Fairbairn Private Bank Limited.
Fairbairn Private Bank (IOM) Limited is licensed by the Isle of Man Financial Supervision Commission to take deposits and provide investment services. Registered office: St Mary’s Court 20 Hill Street Douglas Isle of Man.
The London office is authorised and regulated in the UK by the Financial Services Authority.
Fairbairn Private Bank Limited is regulated by the Jersey Financial Services Commission. Registered office: Fairbairn House 31 The Esplanade St Helier Jersey. Latest audited accounts are available on request.
Authorised and regulated in the UK by the Financial Services Authority in respect of regulated mortgage contracts only.
UK Financial Services Authority registration numbers: Fairbairn Private Bank (IOM) Limited 313189 Fairbairn Private Bank Limited 313187
(INTA)
INTERNATIONAL ADVISER [www.international-adviser.com] MAY 2009
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